Police in the United Kingdom have raided homes associated with a former ambassador to the United States.

Peter Mandelson, a veteran Labour Party politician who served in senior roles in several past governments, was terminated as the UK's ambassador to Washington in September, after it became clear he had continued a close friendship with sex offender Jeffrey Epstein after Epstein had been imprisoned.

Subsequent information suggested Mandelson may even have benefitted financially from his friendship with the billionaire financier, and that he may have shared sensitive information with him, claims that, if proven by police, could warrant charges of misconduct in public office.

With the police investigation underway, UK Prime Minister Keir Starmer, who has been criticized for appointing Mandelson, has angrily claimed the political grandee lied to him about his links to Epstein.

To add to the scandal, sources in the UK Foreign Office said on the weekend Mandelson was given a pay-off when he was removed as ambassador, which was thought to have been around 40,000 pounds ($54,000).

The Times newspaper said this would have equated to about three months of his salary, which was close to 160,000 pounds.

The BBC said government sources have called on Mandelson to give the money back, or donate it to a charity supporting victims of sex crimes.

A Foreign Office spokesperson told the BBC: "Peter Mandelson's civil service employment was terminated in accordance with legal advice and the terms and conditions of his employment. Normal civil service HR processes were followed. Further information will be provided to Parliament as part of the government response to the motion passed last week."

That motion includes a requirement for the government to release all files and electronic communications about Mandelson compiled before and during his appointment as ambassador to Washington, so lawmakers can see clearly what Starmer knew, and when.

As police officers probe allegations that Mandelson may have leaked sensitive government information, officers searched two homes linked with him on Friday.

Deputy Assistant Commissioner Hayley Sewart of the Metropolitan Police said the probe will continue until officers have answers.

"This will be a complex investigation requiring a significant amount of further evidence-gathering and analysis," she said. "It will take some time … and we will not be providing a running commentary."

The UK appointed Mandelson in December 2024, knowing he had been associated with Epstein, who committed suicide in prison in August 2019 while awaiting trial on sex trafficking and soliciting prostitution charges. But Starmer said recently Mandelson assured him their friendship had been casual, and had ended when Epstein was convicted of a sex crime in 2008.

The US government's subsequent release of files associated with Epstein shows the friendship had been much closer than Mandelson had claimed, and had persisted for longer.