Prime Minister Keir Starmer removed Lord Peter Mandelson from his post as the United Kingdom's ambassador to the United States on Friday after the Foreign, Commonwealth & Development Office said newly published emails showed Mandelson had sent messages of support to convicted sex offender Jeffrey Epstein and that the “depth and extent” of their relationship was materially different from what had been known at the time of his appointment.
The decision, announced shortly after newspaper disclosures, came after the Foreign Office said the material had altered the picture the government relied on during vetting. Allies of Mandelson told the press he had disclosed a long‑standing connection with Epstein during vetting and said some relevant messages were on an old account he no longer accessed. Mandelson declined to resign, and government officials moved to remove him from the role, a step that legal and HR advisers said could leave the government exposed to a substantial compensation claim if it could not show lawful grounds for dismissal.
The Foreign Office said the emails demonstrated "the depth and extent of Peter Mandelson's relationship with Jeffrey Epstein is materially different from that known at the time of his appointment." The Daily Mail published photographs it said showed Mandelson and Epstein together and reported that a message in a birthday book compiled by Ghislaine Maxwell described Epstein as "my best pal." The newspaper also published a holiday photograph that it said contributed to the decision to sack Mandelson.
Government sources told the Times and other outlets that HR experts were drafted to ensure due process before Mandelson's removal, and one source said ministers were concerned the case could end in a "disastrous HR process" if not handled carefully. Another source said Starmer had "no choice" but to act quickly because of the optics of leaving Mandelson in post after the disclosures became public. Officials indicated Mandelson remained on the government payroll while a settlement or resolution was sought.
If the government cannot demonstrate lawful cause for dismissal, employment lawyers say a settlement or compensation for loss of position is likely. The possibility of a significant taxpayer‑funded payout prompted comparisons with previous high‑profile public‑sector exits, including exit payments reported for Sir Tom Scholar, Jonathan Slater, Sir Philip Rutnam and Sir Philip Barton, which ranged from the low hundreds of thousands of pounds.
Mandelson, a former European trade commissioner and senior Labour figure who was elevated to the House of Lords in 2008, was appointed ambassador in 2025. The Daily Mail reported a separate photograph of Mandelson meeting former US president Donald Trump in the Oval Office in May 2025.
Mandelson is currently on a leave of absence from the House of Lords that began at the end of January and is due to last for the rest of the parliamentary session. Under the Lords' rules, peers on leave can return to duties by giving three months' notice to the Clerk of the Parliaments. The prime minister's official spokesman said on Friday that whether Mandelson retains his peerage was "not a matter for me."
Opposition and cross‑bench MPs reacted in calls for further action. Labour MP Kim Johnson said Mandelson should be removed from the Lords, and SNP MP Brendan O'Hara has tabled an early day motion accusing Mandelson of bringing Parliament "into disrepute" and calling on the government to take legislative steps to remove his peerage. Conservative frontbencher Neil O'Brien said Mandelson should not be allowed to return to the Lords after being forced to resign.
Mandelson's immediate intentions following his removal as ambassador were not known. The Foreign Office statement and published material prompted a rapid political response and set in train internal legal and HR processes to determine whether the government can justify dismissal without compensation or must negotiate a settlement. Any payout, if agreed, would follow established public‑sector precedents for exit arrangements arising from contested dismissals or negotiated departures.