Peter Mandelson pictured in a bathrobe with friend Jeffrey Epstein(Image: US Committee on Oversight and Government Reform)
Ministers are among those to call on the disgraced former peer to hand back the money, which it emerged this week he settled for after initially asking for a £500,000 settlement.
Speaking to journalists in Paisley, Scottish Secretary Douglas Alexander said: “Firstly in terms of should he pay the money back, yes I would urge him to do so. Whether that’s to charities or to others working in the area of the exploitation of women.
Mandelson pictured this week after plans were announced to strip him of his peerages(Image: AFP via Getty Images)
“We need to recognise that the primary victims in this instance and the people who are most betrayed were the victims of Jeffrey Epstein’s crimes.”
The recent release of Epstein files showed that Mandelson, while serving in Gordon Brown’s cabinet back in 2008, leaked a high-level Downing Street memo to the financier detailing £20 billion in proposed state asset sales and confidential tax policies.
Andrew was arrested last month on suspicion of misconduct in a public office(Image: REUTERS)
The same year, after Epstein was convicted in the US of soliciting prostitution but before he was sentenced, Mandelson appeared to write to him: “You have to be incredibly resilient, fight for early release and be philosophical about it as much as you can. The whole thing has been years of torture and now you have to show the world how big a person you are, and how strong. I think the world of you…”
And in 2010, around the time of the Eurozone debt crisis, Mandelson gave Epstein advance notice of a highly sensitive €500 billion European Union bailout package designed to save the Euro.
Mandelson stepped down from the House of Lords and resigned his membership of the Labour Party after the depth of his friendship with Epstein came to light last month, but legally retains the title of Lord Peter Mandelson of Foy and Hartlepool..
New legislation to strip Mandelson of his title is being drafted and could be broadened out to include any peer who has broken the rules, Downing Street has said.
Andrew and Mandelson are under separate police investigations over their ties to Jeffrey Epstein(Image: AFP/Getty Images)
Prime Minister Keir Starmer’s spokesman told reporters: “The Prime Minister has asked officials to draft legislation which allows Peter Mandelson’s peerage to be removed as quickly as possible.
“The Government’s preference is to bring forward legislation that could be applied to any peer who has breached the rules and brought the other place into disrepute, rather than Mandelson specifically.
“We have begun the work of looking at the scope and ability for such a Bill to be introduced.
“But a Bill of that nature has not been brought before Parliament since 1478, so we are working on that, and we are liaising with the House authorities to ensure that we get this right.”
Andrew Mountbatten-Windsor, who was stripped of his royal titles last year, has not been seen in public since he was arrested last month on suspicion of misconduct in a public office. He has not been charged but remains under investigation.