Downing Street is insisting Mandelson’s £75,000 severance payout did not contradict the government’s own official guidance on public sector exit payouts, which makes clear payouts should not be used to soften reputational damage. Speaking at the Lobby briefing of press hacks this afternoon:
“[Mandelson’s payout was] Treasury-approved severance in line with standard HMT guidance and civil service practices…”
Right… here is the official guidance in question:
“Departments should not use special severance payments as an easy alternative to proper management action, e.g., to avoid difficult decisions, disciplinary processes, unwelcome publicity, or reputational damage.”
The Foreign Office’s HR boss Mark Power is quite clear in emails released in the Mandelson Files: “There is a potential, that absent a positive indication, Peter goes public on some of his claims so there is some urgency [to reach a settlement]”. Number 10 is now demanding Mandelson hands the cash over to charity, although admits it is ultimately ‘a matter for him’. So the odds of that happening are approximately zero…
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