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Lord Mandelson says he has resigned his membership of the Labour Party as he does not want to "cause further embarrassment" by his links to the late convicted paedophile Jeffrey Epstein.
The former cabinet minister, who was sacked as US ambassador last year because of his past connections to Epstein, appeared in the latest release of files by the US Department of Justice on Friday.
Documents suggest Epstein made $75,000 (£55,000) in payments to Lord Mandelson in three separate $25,000 transactions in 2003 and 2004.
In his letter to Labour's general secretary, Lord Mandelson said: "I have been further linked this weekend to the understandable furore surrounding Jeffrey Epstein and I feel regretful and sorry about this."
He added: "Allegations which I believe to be false that he made financial payments to me 20 years ago, and of which I have no record or recollection, need investigating by me.
"While doing this I do not wish to cause further embarrassment to the Labour Party and I am therefore stepping down from membership of the party.
"I want to take this opportunity to repeat my apology to the women and girls whose voices should have been heard long before now.
I have dedicated my life to the values and success of the Labour Party and in taking my decision, I believe I am acting in its best interests.
Earlier on Sunday, Lord Mandelson had said he did not know whether the newly released documents were authentic.
He reiterated his regret for "ever having known Epstein" and for continuing his association following the disgraced financier's conviction, apologising "unequivocally to the women and girls who suffered".
Labour MP Gordon McKee told BBC Radio 4 that Epstein's victims would be "rightly outraged" by the recent revelations and that Lord Mandelson had done the "right thing" by resigning from the Labour Party.
A Conservative Party spokesman criticised Prime Minister Sir Keir Starmer for "allowing Mandelson to resign from the Labour Party instead of kicking him out".
Conservative leader Kemi Badenoch earlier on Sunday had called on the prime minister to suspend Lord Mandelson's membership and launch an investigation into his ties to Epstein.
Housing Secretary Steve Reed had said the government was not aware of Lord Mandelson's alleged financial links to Epstein, after being asked about it by Laura Kuenssberg.
Lord Mandelson has a long history with the Labour Party. His grandfather was Herbert Morrison, a cabinet minister in Clement Attlee's 1945 government, and he began working for Labour in the 1980s.
Lord Mandelson was sent to Washington by Sir Keir in December 2024 as the UK's ambassador, but was sacked the following September after further revelations emerged about his friendship with Epstein.
He has been on a leave of absence from the House of Lords since he was appointed UK ambassador to the US.
Emails revealed he had been in contact with Epstein after the US financier's 2008 conviction, sending a string of supportive messages.
Epstein's 2008 conviction was part of a plea bargain he reached in Florida. He was sentenced to 18 months in prison after pleading guilty to two charges, including soliciting girls as young as 14 for prostitution.
In 2019, Epstein died in a New York prison cell while awaiting trial on sex trafficking charges.
The latest documents were released by the US Department of Justice as part of millions of new files related to Epstein - the largest batch since a law mandated their release last year.
The included bank statements, first reported by the Financial Times, appear to show three separate payments referencing Lord Mandelson, who was Labour MP for Hartlepool at the time, being sent from Epstein's JP Morgan bank accounts.
The first, dated 14 May 2003, shows a payment was sent to a Barclays bank account where Reinaldo Avila da Silva - Lord Mandelson's partner at the time - is named as "A/C", typically an abbreviation for account.
In that payment, a "Peter Mandelson" is named on the account as "BEN", which is often an abbreviation for beneficiary.
The second and third payments of $25,000 were made to HSBC accounts only days apart in June 2004. In both, "Peter Mandelson" is the only person named, again as "BEN".
It is unclear if the three payments ever made it into any of the named accounts.
Images of the former UK ambassador to the US in his underwear have also been uncovered in the latest tranche of Epstein files.
In a redacted picture, he is seen standing next to a female, whose face is not visible.
Lord Mandelson has said he "cannot place the location or the woman and I cannot think what the circumstances were".
It is not known when or where the images of Lord Mandelson and the female were taken.
Being named or pictured in the files is not an indication of wrongdoing.
Meanwhile, emails in the files released on Friday also show Lord Mandelson tried to change government policy on a planned tax on bankers' bonuses, following requests from Epstein.
Trying hard to amend," Lord Mandelson wrote to Epstein in December 2009. "Treasury digging in but I am on [the] case.
At the time Lord Mandelson was business secretary in Gordon Brown's government.
Lord Mandelson has told the BBC that every UK and international bank was making the same argument about the impact on UK financial services, adding: "My conversations in government at the time reflected the views of the sector as a whole not a single individual."
Source: BBC
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