'Riot damages offer won't cover half of my losses'

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Mark Rees-Dawson, 42, claimed £50,000 after he lost all his possessions in his Croydon flat in August.

The Tube driver said he was "devastated" by the offer of just £26,556 from the Met, which is making compensation payments under the Riot Damages Act, adding: "Half of the money is not going to buy back half of what I had."

He also hit out at insurance firms for delaying payments to thousands of victims.

Just £1.6million has been handed over to 320 families and businesses, it emerged this week. Almost 90 per cent of victims are still waiting for compensation.

Mr Rees-Dawson was able to move in with his girlfriend but said he is struggling financially and "does not know how he will cope" without the full amount of compensation he feels he is owed.

Croydon North MP Malcolm Wicks has accused the Government of a "colossal failure" and said some of his constituents have received "paltry" payments.

He said today: "People are being short-changed. They are paying a second penalty. First they lose their home and then six months later they are only given half the value of the goods that they lost." Mr Rees-Dawson told how he had spent months wrangling with loss adjusters who were demanding receipts and bank statements which were lost in the blaze.

He said: "After spending six months collecting all the information this is all they could come up with. I was completely devastated and shocked when I saw the letter. It is an absolute disgrace. I'm not going to accept this, I just can't."

Mr Rees-Dawson accused the Government of breaking its promise to victims of the riots. He said: "David Cameron said two things just after the riots - we'd be dealt with quickly and nobody would lose out. They took six months to get back to me and I have definitely lost out. The Home Office should have followed this up and taken charge."

This week it emerged that 1,002 claims are still being processed and a decision has still not been taken on another 839.

More than 1,200 of the original claims fell outside the terms of the Riot Damages Act.