Labour has attempted to defend handing Peter Mandelson £77,000 of taxpayers' cash - by arguing the peer had initially vied for £550,000.
Earlier this afternoon, the first batch of documents on Lord Mandelson's vetting process to become ambassador to the US showed the New Labour titan receiving the eye-watering five-figure sum as severance pay when Sir Keir Starmer fired him.
The figure, which was described as "good value for money" by Foreign Office boss Sir Oliver Robbins, fell well short of Lord Mandelson’s original hefty demand.
The 147-page document was released shortly before the Prime Minister’s Chief Secretary Darren Jones stood in the House of Commons to update MPs on the matter.
Delivering the update, the PM's right-hand man told the Commons: "As the documents show regarding his severance payment, Peter Mandelson initially requested a sum that was substantially larger than the final payment.
"Not just two or even three times, but more than six times the final amount."
He added: "The Government obviously found that to be inappropriate and unacceptable.
"The settlement that was agreed was to avoid even higher further costs involving a drawn out legal claim at the employment tribunal, given Peter Mandelson employment as a civil servant rather than a minister, the House will know that ministers can be dismissed without recourse to the Employment Tribunal.
"Civil servants are treated differently."
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