An MP has called on the royal family to explain how Prince Andrew funded a settlement in a sexual abuse case brought by Virginia Giuffre.

Rachael Maskell, who represents York Central, said “a lot of clarity” was needed regarding the reported £12m payment, made in 2022.

Maskell has long campaigned for Andrew to be stripped of his Duke of York title amid revelations about his relationship with the late child sex offender Jeffrey Epstein. Andrew announced on Friday he would no longer use the title but he will officially retain the dukedom, which can only be removed by an act of parliament.

Giuffre was 41 when she died by suicide in April. She said she was abused by Epstein from the age of 16 and trafficked to other powerful men. She brought a civil case against Andrew in New York, alleging he sexually assaulted her on three occasions when she was 17.

Andrew made no admission of liability and has always denied Giuffre’s claims, but agreed to settle the case out of court. The Telegraph reported on Saturday that, as part of the deal, Giuffre agreed not to repeat her accusations for a year to avoid tarnishing Queen Elizabeth II’s platinum jubilee.

There have been longstanding rumours that the late queen partly funded the settlement with private income from the Duchy of Lancaster, a property portfolio that has been controlled by reigning monarchs since medieval times.

Maskell said: “I think we need a lot of clarity over this. I think honesty is so important. Virginia Giuffre no longer with us, but she has family. It’s important that everyone has transparency. There is no space for obfuscation, no matter how embarrassing it is.”

Andrew continues to live in the palatial 30-room Royal Lodge in Windsor, despite having no discernible income beyond a naval pension. He has a 75-year lease on the property and is responsible for maintaining it. He has reportedly resisted the king’s efforts to move him to nearby Frogmore Cottage.

In a statement released on Friday, Andrew said he had made the decision to surrender his titles after a discussion with the king, where it was “concluded the continued accusations about me distract from the work of His Majesty and the royal family”.

He will also give up use of his honours as a Knight Grand Cross of the Royal Victorian Order (GCVO) and Royal Knight Companion of the Most Noble Order of the Garter. His only remaining title will be that of prince. As he was born the son of a queen, this cannot be removed.

Maskell, who lost the Labour whip in July after rebellions on welfare policy, previously introduced a bill aimed at giving the monarch powers to remove titles of his own accord, or after the recommendation of a joint parliament committee.

She said she would attempt to reintroduce the bill to parliament next week, suggesting she had support from other MPs. Maskell added: “We stand up for really high values in [York]. When there was polling on this in back 2022, 80% of residents said they did not want that title continued because of the association with our city. That’s why I have stood firm.”

Last weekend, the Mail on Sunday and the Sun on Sunday reported that Andrew contacted Epstein the day after a picture of him with his arm around a teenage Giuffre was published in the press. In 2019, Andrew told the then BBC journalist Emily Maitlis that he had cut contact with Epstein by this point during his infamous Newsnight interview. The newspapers quoted from an email in which Andrew reportedly told Epstein: “I’m just as concerned for you! Don’t worry about me! It would seem we are in this together and will have to rise above it. Otherwise keep in close touch and we’ll play some more soon!!!!”

Speaking to the BBC on Friday, Giuffre’s brother, Sky Roberts, said Andrew’s decision to surrender his titles was a “joyous moment”. He added: “I think her kids would be incredibly proud to know that their mom is an American hero. She’s an international hero. That all the years of work that she put in is now coming to some sort of justice and these monsters can’t escape from it.”

The Epstein accuser Haley Robson called the news “extremely bittersweet”. She told the BBC: “I have moments of joyous tears where I’m just flabbergasted that something finally broke.”