The peer lost his job in September last year over his relationship with paedophile financier Jeffrey Epstein.
However, anger in Westminster has grown after the last release of documents, which indicated he leaked information to his friend while he was a government minister.
Prime Minister Sir Keir Starmer's allies have said he should give the taxpayer-funded handout, which could run into the tens of thousands, back or donate it to a victims' charity.
The Foreign Office said a review had been launched "in light of further information that has now been revealed".
The payoff Lord Mandelson received could be as high as £55,000 before tax and deductions, the Sunday Times reported.
The Foreign Office previously said it had "reached a settlement in order to terminate Peter Mandelson's civil service employment with immediate effect, in accordance with legal advice and the terms and conditions of his employment."
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The depiction appeared towards the end of the video, asserting debunked claims that the 2020 election - which he lost to Joe Biden - was stolen from him.
Posted on Mr Trump's own social media network, the two-second clip shows the Obamas as apes bobbing up and down to the tune of The Lion Sleeps Tonight.
The post was later deleted - around 12 hours after being shared.
A White House official said a member of staff "erroneously made the post" and it had now been taken down.
Later, while onboard Air Force One, the US president said that "of course" he condemned the racist parts of the video, but told journalists he would not apologise, and did not say whether he would fire the staffer who posted it.
"No, I didn't make a mistake," he said, adding that he didn't see the full video. "I looked at the beginning of it. It was fine."
He then said: "I looked in the first part and it was really about voter fraud in, and the machines, how crooked it is, how disgusting it is.
"Then I gave it to the people. Generally, they'd look at the whole thing. But I guess somebody didn't, and they posted. We took it down as soon as we found out about it."
'Every single Republican must denounce this'
The post sparked widespread outrage from across the political spectrum, while the White House's response was also criticised.
Kamala Harris, Mr Trump's Democratic rival in the 2024 presidential election, said: "No one believes this cover-up from the White House, especially since they originally defended the post.
"We are all clear-eyed about who Donald Trump is and what he believes."
In a message on X, formerly Twitter, Gavin Newsom, the Democratic governor of California, accused the president of "disgusting behaviour" over the post.
He added: "Every single Republican must denounce this. Now."
Responding to the video, Senate Democratic leader Chuck Schumer wrote on X: "Racist. Vile. Abhorrent. This is dangerous and degrades our country-where are Senate Republicans?"
Mr Schumer urged the US president to apologise to the Obamas, calling the couple "two great Americans who make Donald Trump look like a small, envious man".
Ben Rhodes, who served as deputy national security adviser in the Obama White House, reacted to the video by calling Mr Trump "a stain on our history".
"Let it haunt Trump and his racist followers that future Americans will embrace the Obamas as beloved figures while studying him as a stain on our history," he wrote on X.
George Conway - ex-husband of Kellyanne Conway, who managed the president's successful election campaign in 2016 - responded by highlighting an article he'd written describing Mr Trump as a "racist" in 2019.
The group Republicans Against Trump wrote: "There's no bottom."
White House initially criticised 'fake outrage'
Before the post was removed, White House press secretary Karoline Leavitt defended it and said the depiction formed part of a longer video depicting various politicians as animals.
She said: "This is from an internet meme video depicting President Trump as the King of the Jungle and Democrats as characters from The Lion King.
"Please stop the fake outrage and report on something today that actually matters to the American public."
Mr Trump has a long history of attacking Mr Obama, his predecessor as president, and was a vocal proponent of the "birther" conspiracy theory.
The theory cast doubt on Mr Obama's birth in Hawaii, asserting that he was actually born in Kenya, and therefore ineligible to hold the office of president.
Mr Obama produced his long-form birth certificate in 2011. In 2016, Mr Trump publicly accepted that his predecessor was born in the US.
I know the US president and those around him have said and done some despicably racist things in the past - but this?
Read more: Trump says he didn't make a mistake over Obamas as apes video
Prior to being in office, Donald Trump and his father, Fred, were sued by the US Department of Justice in the 70s for refusing to rent apartments to black tenants.
He then, in the 80s, led calls for the death penalty for five young black men, who became known as the "Central Park Five", who were wrongly convicted of a brutal rape.
And even when it became clear they were innocent, he continued to claim they were guilty.
And he was the one who led the racist conspiracy theory that Barack Obama was not a legitimate president because, as Trump loudly and wrongly claimed, Obama wasn't born in the US - that became known as the birther conspiracy.
But even with that history - and there are more examples - I still could not really believe what I was seeing when that image came across my timeline.
Never did I think I'd see a sitting president of the United States posting such a video containing such an overt, unquestionably racist image.
The argument made by some that this video, when played in full, isn't racist, is laughable in its naivety and offensive in its assumption about the audience which saw it.
Its creator made a decision to depict the Obamas as apes. Its poster made a decision to share it on his platform.
Not that this should need explaining, but the dehumanisation of black people in this way is a trope dating back hundreds of years.
It's something which had, for many years, been confined to the dustbin of history, while still very much a part of the vocabulary of white supremacists.
But something has changed.
Maybe it's social media, maybe it's something else, but something has changed. We are in a new reality where, for more than 12 hours, Trump's White House thought this was OK.
As I was preparing for today, my five-year-old son was running around the house playing. Each time he passed my screen and that image was up, I had to move my laptop.
I didn't want him to see it, to have to explain that, to have to have that conversation.
But have that conversation I will, as my mother had with me.
There has been an increase in racist language and behaviour online, where it's found an audience and metastasised.
It's hard to quantify how much it's increased, as social sites are many and disparate.
In the US, a study in the Journal of Epidemiology found in an analysis of 55 million tweets between 2011 and 2021, a 16% increase in racist language.
The New York Times reports antisemitic and anti-Muslim hate speech jumped by 919% and 422% respectively in the aftermath of the Hamas attacks on October 7 and the Israeli response.
And a study from Goldsmiths University here in the UK found 95% of minority groups see racist content online - 16% see it every day and 42% of those asked said it was damaging to their mental health.
So this sort of thing matters.
This will not be the last time something like this happens - the White House has taken it down, blaming a junior staffer - which is odd as we are told Trump does all his own posting and it went up at midnight - but at least it's not up there anymore.
But the damage has been done, whatever mask there may have been has slipped.
The test for all of us now comes in how we respond the next time it happens.
Donald Trump has not apologised for the video, shared on his Truth Social account, depicting Barack and Michelle Obama as apes, saying "I didn't make a mistake".
The post was deleted around 12 hours after being shared.
The US president said "of course" he condemned the racist parts of the video.
In 1973, the Department of Justice sued Donald Trump and his father for alleged racial discrimination at Trump housing developments in New York. The case was settled two years later with no admission of guilt.
The five men wrongly convicted of raping a woman in Central Park have sued Donald Trump on accusations of making "false and defamatory" statements during a presidential debate against former vice president Kamala Harris in 2024.
Mr Trump has tried to have the lawsuit dismissed, but has so far been unsuccessful.
The Environment Agency (EA) has issued 77 warnings for England, meaning flooding is expected, mainly concentrated in the South West and Midlands.
A further 244 flood alerts are in force, meaning flooding is possible, stretching from North Yorkshire to Cornwall, and from the Welsh borders to Norfolk.
Natural Resources Wales has another 11 flood alerts in place across the border. Scotland has one flood warning and five flood alerts.
Check the weather forecast in your area
Warwickshire Fire and Rescue Service also warned that levels in the River Dene had "risen to a state where flooding is imminent".
The EA usually issues flood warnings 30 minutes to two hours before flooding, according to its website.
It issues them when flooding is expected from rivers, from heavy rains that could cause flash floods, and from high tides and surges coupled with strong winds at sea.
More wet weather is predicted for large parts of the country on Saturday, including blustery showers in the South West and heavy showers in South Wales.
England flood alerts
Scotland flood alerts
Wales flood alerts
NI flood alerts
Sunday offers a more mixed picture, with showers and some sunshine, before wet and windy conditions resume at the start of next week.
Rain has fallen every day of 2026 in the South West and South Wales, the Met Office announced this week.
Both regions have faced 50% more rainfall than usual for January, the forecaster said.
Meanwhile, the South East received nearly a third of its average February rainfall in just the first three days of the month.
Read more:
When will the rain end? What the Met Office is saying
Migrant crossings hit five-year low in stormy January
"Unfortunately, there's no end in sight," said Dan Stroud, operational meteorologist with the Met Office.
His colleague Alex Deakin said the trend continued on Friday.
He said: "Friday's been a very soggy day across a good chunk of the country, cold wind continuing to feed in the cloud and the moisture across north-east England and eastern Scotland."
Speaking earlier this week, Mr Stroud blamed a "big area of high pressure" for the sustained bleakness.
He said: "Very little in the way of change, and the reason for it really is that we've got a big area of high pressure way out to the far north and east of the country, and that's stopping areas of low pressure from moving through.
"Until that area of high pressure sort of shifts out of the way, we're not really going to see much of a change in the forecast.
"At the same time, we've got the jet stream way to the south, bringing exceptional wet weather to Spain and Portugal."
Officers in riot gear and with shields confronted about 100 protesters, some of whom wore hoods and scarves to cover their faces, after they broke away from a main demonstration and appeared to be trying to reach the Santagiulia Olympic ice hockey rink.
A group of protesters also set off smoke bombs and firecrackers about half a mile (800 metres) from the Olympic Village, where around 1,500 athletes are staying.
Six people were arrested during the altercation, according to police sources.
The main demonstration saw an estimated 10,000 people taking to the streets of Milan on Saturday, on the first full day of the Winter Olympics, to protest against the environmental, economic and social impact of the Games.
Read more: Follow all the updates from the Winter Olympics in Italy
Olympic infrastructure projects criticised
The march was organised by grassroots unions, housing-rights groups and social centre community activists.
Protesters carried cardboard cutouts of trees to represent the trees that were felled to build the new bobsled run in Cortina for the Olympics, arguing that infrastructure projects like this have damaged the environment in mountain communities.
"They bypassed the laws that usually are needed for major infrastructure projects, citing urgency for the Games," one protester said, adding that he was concerned that the private company organising the event would eventually pass on debt to Italian taxpayers.
The International Olympic Committee argues that the Games largely use existing facilities, making them more sustainable.
Read more:
Opening ceremony crowd ignored plea not to boo
Olympics hit by penis enhancement controversy
Best pictures from the Olympics opening day
Police brought the splinter group of violent protesters under control before the main demonstration finished, according to Italian news agency ANSA.
'ICE out' signs
Some protesters said they were opposed to the deployment of US immigration and customs enforcement (ICE) agents to Italy to provide security to the US delegation of athletes, following previous protests in the buildup to the Games.
US Homeland Security Investigations, an ICE unit that focuses on cross-border crimes, often sends officers to events abroad like the Olympics to help with security.
The ICE unit used to crack down on immigration in the US is known as Enforcement and Removal Operations, and there is no indication its officers have been deployed to Italy.




