Peter Mandelson, a prominent British politician and former ambassador to the United States, has stepped down from the Labour Party following the release of new documents linking him to financial transactions with convicted sex offender Jeffrey Epstein, intensifying scrutiny on the UK establishment.
The latest trove of Epstein files, released by the U.S. Department of Justice, includes hundreds of messages and bank records suggesting that Epstein made payments totaling $75,000 to accounts associated with Mandelson between 2003 and 2004. Mandelson, who served as a Labour MP at the time, has denied any recollection of receiving these funds and questioned the authenticity of the documents, but resigned to avoid further embarrassment to the party.
In addition to the alleged payments, the documents reveal warm communications between Mandelson and Epstein, including an email where Mandelson referred to Epstein as “my best pal” in 2003. Other records indicate that Epstein sent $10,000 to Mandelson’s partner for an osteopathy course in 2010, and that Mandelson, while a government minister, discussed lobbying on tax issues with Epstein.
Prime Minister Keir Starmer, who appointed Mandelson as ambassador to Washington in 2025, fired him in September after earlier emails showed continued contact with Epstein post-conviction. Now, Starmer faces pressure to ensure Mandelson resigns from the House of Lords, where he holds a life peerage, and to compel his testimony in U.S. investigations into Epstein’s network.
Mandelson’s resignation from Labour came on Sunday, February 2, 2026, with him issuing an apology to Epstein’s victims and stating his intention to investigate the allegations. A Labour Party spokesperson acknowledged the resignation, while government ministers emphasized that Starmer did not have full information about Mandelson’s Epstein ties at the time of his appointment.
The scandal has reignited debates about accountability and transparency within the British political elite. Cabinet minister Steve Reed and others have called for Mandelson and other figures, including the former Prince Andrew, to testify and assist victims, highlighting a moral obligation to uncover the truth.
Mandelson’s career has been marked by both influence and controversy. A key architect of New Labour under Tony Blair, he held senior positions but resigned twice over ethics scandals before making a comeback. His recent ambassadorial role was seen as leveraging his trade expertise, but the Epstein connections have overshadowed his legacy.
Looking ahead, Starmer has ordered an urgent review of Mandelson’s government contacts with Epstein, and parliamentary processes may be initiated to remove him from the House of Lords if he does not step down voluntarily. The episode underscores ongoing challenges in addressing historical associations with disgraced figures and maintaining public trust.
