Sir Keir Starmer’s chief of staff should not resign over the Mandelson scandal because the responsibility “lies with the prime minister”, a cabinet minister has said.

Speaking to Sky News’ Sunday Morning with Trevor Phillips, Work and Pensions Secretary Pat McFadden defended Morgan McSweeney, who several Labour MPs believe should quit or be sacked.

Mr McSweeney is said to have pushed for Peter Mandelson to be appointed ambassador to the US last year, despite his known links to paedophile financier Jeffrey Epstein.

Asked if he should go, Mr McFadden said: “I don’t think he should. In the end… it’s a prime ministerial appointment. And prime ministers have to take responsibility for the decisions that they make.”

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Lord Mandelson was sacked from the Washington role in September over emails he sent to Epstein following his conviction for sex offences in 2008.

However, anger over the appointment intensified this week following the latest tranche of Epstein files, which suggest Lord Mandelson may have leaked marked sensitive information to his friend after the global financial crisis, when he was business secretary in Gordon Brown’s government.

Some MPs have openly called for Sir Keir to resign after he seemed to confirm that Lord Mandelson’s ongoing relationship with Epstein came up in the disgraced former ambassador’s vetting.

However Mr McFadden said a change of leadership would cause reputational damage as he defended his boss.

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He told Trevor Phillips: “I think he’s got a five-year mandate, which was just voted for 18 months or so ago in a general election. His task is by no means complete, barely begun.

“And I also think it is not good for the country to change its prime minister every 18 months or two years is leading to chaos and uncertainty, economically, politically and reputationally around the world.

“So I know this has been a difficult week, but I think we should stick with the prime minister, support him. He admits he’s made a bad mistake here. He has apologised for it, and I’m sure he will learn from that going forward.”

Mr McFadden also said Lord Mandelson should return the payoff he received after being sacked or “give it to a charity, perhaps one involving violence against women and girls”.

He added: “I think taking a payoff in these circumstances, I don’t think the public will think much of that.”