You are in > manchester.com  > News > Payoff peer: Mandelson becomes a lord

Politics

Payoff peer: Mandelson becomes a lord

13/10/2008

Peter Mandelson is set to be made a peer this afternoon, as controversy swirls around him concerning his transitional payments from the role of European trade commissioner.

Mr Mandelson will continue to receive £234,000 over the next three years in taxpayers' money, in addition to a ministerial income of £104,386.

This comes in addition to a generous EU pension scheme which pays him £31,000 a year – rising in line with inflation – from the age of 65.

The extent of Mr Mandelson's payments caused outrage among opposition parties.

Mark Francois, Conservative Europe spokesman, said: "Not only did Gordon Brown recall Peter Mandelson to shore up his own position, but it adds insult to injury to know taxpayers will have to pay extra for the privilege."

Mr Mandelson becomes Lord Mandelson of Foy and Hartlepool today in order for him to assume his role as business secretary.

Hartlepool used to be his Commons constituency while Foy is a village where he holidayed as a child.