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Half of riot compensation claims rejected, police figures reveal Half of riot compensation claims rejected, police figures reveal
(9 months later)
More than half the claims for compensation after last year's riots have failed, leaving hundreds of families and businesses struggling to make ends meet, according to figures obtained by the Guardian.More than half the claims for compensation after last year's riots have failed, leaving hundreds of families and businesses struggling to make ends meet, according to figures obtained by the Guardian.
Eleven months after David Cameron promised to get affected businesses "back up and running", figures from nine police forces covering the worst-hit areas show that of the 4,500 claims submitted under the Riots Damages Act, just over half were rejected or discontinued.Eleven months after David Cameron promised to get affected businesses "back up and running", figures from nine police forces covering the worst-hit areas show that of the 4,500 claims submitted under the Riots Damages Act, just over half were rejected or discontinued.
The findings come as the Reading the Riots project by the Guardian and London School of Economics reveals the ongoing struggle faced by victims of the riots. Interviews with people whose lives were turned upside down by the violence and looting reveal that some have not received any money, while others complain of a complicated and bureaucratic system.The findings come as the Reading the Riots project by the Guardian and London School of Economics reveals the ongoing struggle faced by victims of the riots. Interviews with people whose lives were turned upside down by the violence and looting reveal that some have not received any money, while others complain of a complicated and bureaucratic system.
In some cases assessors have demanded to see receipts even though the claimants' entire possessions – including paperwork – have been destroyed.In some cases assessors have demanded to see receipts even though the claimants' entire possessions – including paperwork – have been destroyed.
The Labour MP David Lammy, whose north London constituency was badly hit last August, said the compensation system had failed victims and the wider community.The Labour MP David Lammy, whose north London constituency was badly hit last August, said the compensation system had failed victims and the wider community.
"It is just staggering that as we approach a year on from the riots, these people find themselves in a situation where their businesses are closing down or going to the wall, their families are experiencing serious hardship and the way they have been treated by the state bureaucracy is something akin to a situation we would not even accept in a developing country.""It is just staggering that as we approach a year on from the riots, these people find themselves in a situation where their businesses are closing down or going to the wall, their families are experiencing serious hardship and the way they have been treated by the state bureaucracy is something akin to a situation we would not even accept in a developing country."
Lammy said failure to properly compensate many of those who were hardest hit risked creating "urban ghettos" as shopkeepers and businesses go bust or are forced to move away. "If you are a Londoner you use these shops every day. These are people who get up at 4am and don't finish until 12 at night, and this is how they are to be treated … almost as if they are criminals trying to get more than they deserve."Lammy said failure to properly compensate many of those who were hardest hit risked creating "urban ghettos" as shopkeepers and businesses go bust or are forced to move away. "If you are a Londoner you use these shops every day. These are people who get up at 4am and don't finish until 12 at night, and this is how they are to be treated … almost as if they are criminals trying to get more than they deserve."
The figures on compensation claims come from nine forces: the Met, West Midlands, Greater Manchester, Merseyside, Nottinghamshire, Surrey, Kent, Gloucestershire and Avon and Somerset. The figures show that of the 4,558 claims submitted under the Riots Damages Act, 2,331 were rejected or discontinued.The figures on compensation claims come from nine forces: the Met, West Midlands, Greater Manchester, Merseyside, Nottinghamshire, Surrey, Kent, Gloucestershire and Avon and Somerset. The figures show that of the 4,558 claims submitted under the Riots Damages Act, 2,331 were rejected or discontinued.
Despite suffering some outbreaks of disorder, Nottingham, Surrey and Kent – which received 38 claims between them – did not class what happened in their area as a riot. In London, which suffered the most widespread violence and looting, 3,487 claims were submitted and 1,829 rejected or discontinued.Despite suffering some outbreaks of disorder, Nottingham, Surrey and Kent – which received 38 claims between them – did not class what happened in their area as a riot. In London, which suffered the most widespread violence and looting, 3,487 claims were submitted and 1,829 rejected or discontinued.
Police forces said claims had been rejected because they did not meet the criteria under the Riots Damages Act, either because the disturbances had not been classed as a riot or because people were claiming for things that were not covered such as "business interruption", loss of trade or damage to vehicles. Police also said there had been multiple claims for a single incident or that some claims had been submitted too late.Police forces said claims had been rejected because they did not meet the criteria under the Riots Damages Act, either because the disturbances had not been classed as a riot or because people were claiming for things that were not covered such as "business interruption", loss of trade or damage to vehicles. Police also said there had been multiple claims for a single incident or that some claims had been submitted too late.
Sir William Castell, of the High Street Fund, which was set up to help businesses with fewer than 12 employees, said it had paid out almost £3m to 575 victims and had rejected 14% of applications.Sir William Castell, of the High Street Fund, which was set up to help businesses with fewer than 12 employees, said it had paid out almost £3m to 575 victims and had rejected 14% of applications.
He said the state had to move much more quickly and effectively to help those who had lost out. "It has been much too slow. It is a disgrace. Many of these people have been given no chance to survive so they just close up shop."He said the state had to move much more quickly and effectively to help those who had lost out. "It has been much too slow. It is a disgrace. Many of these people have been given no chance to survive so they just close up shop."
Lammy said the figures showed the legislation was not fit for purpose. "The Riots Damages Act is acting against communities, not alongside them and for them," he said.Lammy said the figures showed the legislation was not fit for purpose. "The Riots Damages Act is acting against communities, not alongside them and for them," he said.
A Home Office spokesperson said decisions over claims were "entirely a matter for police authorities. The Home Office has promised to refund police authorities every penny they pay out to householders and businesses who qualify under the Riot Damages Act." Figures from the nine forces show that more than £9m has been paid out by police forces under the Riots Damages Act so far.A Home Office spokesperson said decisions over claims were "entirely a matter for police authorities. The Home Office has promised to refund police authorities every penny they pay out to householders and businesses who qualify under the Riot Damages Act." Figures from the nine forces show that more than £9m has been paid out by police forces under the Riots Damages Act so far.
More than 870 claims are still classed as outstanding, of which a handful relate to money owed to individuals and the rest to insurance companies that have already paid out to victims.More than 870 claims are still classed as outstanding, of which a handful relate to money owed to individuals and the rest to insurance companies that have already paid out to victims.
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