Business Secretary Peter Mandelson is in line for a pay-out of up to £1m after leaving the European Commission to rejoin the Cabinet. He will continue to receive taxpayer-funded EU pay worth £234,000 over three years – in addition to his annual ministerial salary of £104,386.
The Conservatives spokesman on Europe said the details of the “golden goodbye” would anger UK voters. Mr Mandelson will be ennobled on Monday to allow him to return to the Cabinet. He will take his seat in the House of Lords as Lord Mandelson of Foy and Hartlepool.
I can’t think of anyone I know who isn’t paid a mil in severance and is a Lord, common as muck, like all those millionaire Lords the Tories have… Although really the evil commu-tory BBC are exaggerating it a bit, it’s not a lump sum after all!
The business secretary is entitled to the EU compensation package despite giving up his post as trade commissioner voluntarily after four years. Under EU rules, Mr Mandelson will be eligible for around £78,000 in “transitionary payments” annually for the next three years. The money – £234,000 in total – will also be subject to preferential tax rates devised for EU officials.
The top-up ensures his income in his new job is the same as his £182,500 salary as a commissioner. In addition to the salary boost, Mr Mandelson’s four-year stint in Brussels entitles him to a pension. When he reaches the age of 65, Mr Mandelson will receive a pension, starting at £31,000 and then rising in line with the cost of living.
A private sector worker who wanted to ensure a similar income in retirement would have to build a pension fund worth more than £700,000. As he relocates from Brussels to London, Mr Mandelson is also due a one-off resettlement grant of £15,000.
Only £15 grand? That’s pretty well much leaving him with a bin bag and a coach ticket home. How’s he meant to fund moving on his poverty pay? Subject to preferential tax rates? Oh the humanity! I can only hope he picks up some moonlighting directorship gigs to keep body and soul together as he serves the public so selflessly. And an inflation linked £31 grand pension? Why not just start feeding him value dog food as he freezes to death right now you stingy bastards!
Oh Mandy, you came and you gave without taking!
[Ok it was just an excuse for the Manilow lyric. Damn you, history will be my judge!]