Shopkeepers hit by last summer’s riots are struggling to get to grips with confusing payouts to help them get back on their feet, the London Assembly has heard.

Insurance industry and local council representatives have been questioned by the Assembly’s Budget committee about confusion between insurance claims, police compensation and local authority payouts.

Budget chairman John Biggs, who represents east London on the Assembly, said: “Many small traders struggled in the days and months after the riots to get the cash to rebuild their businesses. Some were waiting on the insurance companies and some on the police to pay out through the Riots Damages Act.

“The process was simply too complex for many who were left confused and traumatized by the sudden loss of their businesses.”

The Assembly is looking at how the process can be streamlined to help traders get back on their feet quickly should similar events occur again. A report is to be published in the autumn.