Mandy takes EU pay for THREE more years on top of his £100k Minister salary

Peter Mandelson is to receive up to £78,000 of taxpayers' money each year on top of his new Cabinet Minister’s salary.

The new Business Secretary is entitled to receive ‘parachute payments’ from the European Commission after giving up his Trade Commissioner post – and Mr Mandelson has confirmed he intends to take up the option.

He stands to collect up to £234,000 of taxpayers’ EU funding over the next three years, prompting accusations he is cashing in on the Brussels gravy train.

Mr Mandelson, 54, was asked by Gordon Brown to return to the Cabinet two weeks ago. He will become a life peer and earn £104,000-a-year at Westminster.

All former EU Commissioners are entitled to monthly ‘transition allowance’ payments as a way of cushioning the financial blow of leaving their posts. Mr Mandelson will be able to draw up to £78,000 – the difference between his previous £182,500 salary in Brussels and his new pay packet.

The cash cushion will be taxed at only 26 per cent under special ‘community rates’ open to EU officials. A tax expert said yesterday that a similar payment in the UK would be subject to tax at the higher rate of 40 per cent.

Conservative Shadow Europe Minister Mark Francois said: ‘Peter Mandelson has only been in the job a week and he’s already sorted himself a nice little earner.
‘While millions of people across the country are struggling to pay their mortgages, he seems to be getting the taxpayer to help finance his.

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