Flooded traders wait for Thames Water compensation

Six months after a burst water pipe destroyed businesses and homes in north London, some shops remain closed as they struggle to receive compensation from Thames Water.

"I would say that was one of the worst experiences I've ever been through," said Caledonian Road beauty salon owner Eleni Lasheen. "To them it's just an insurance spreadsheet. To us it's our livelihood, it's our business."

Islington Council said about 40% of businesses making a claim had not received any financial support from the water company since February.

Thames Water said its insurance claims handlers were working with businesses affected to progress cases "as quickly as possible".

In February, a burst pipe flooded homes and businesses on Caledonian Road. After suffering huge losses, some shops are still not open.

The owner of Zaks Tailoring Mohamad Zakaria said he had spent months trying to make a claim with Thames Water.

He said: "The shop is empty. Thames Water still is not paying my tenancy rent, my wages."

Zakaria said all of the items that he had been storing in the basement had been destroyed by the floodwater.

"It's really, really difficult," he said. "Every month I pay from my pocket because I'm not working. I'm not receiving any money."

Six months on, and eight of the 48 business claims with Thames Water have been fully settled. Roughly 40% have not received interim payments.

For businesses that have reopened, they said it was a battle with the water company to receive compensation.

It is the latest negative story about Thames Water, which last month paid its finance chief a £1m signing-on fee as it struggles with a mountain of debt and faces temporary nationalisation.

On Thursday, a council leader said its response to a major water outage was causing "unacceptable inconvenience and distress".

Lasheen, who has run her beauty salon on Caledonian Road for 18 years, said she had to throw away all of the furniture in the front of the shop, because it was "contaminated" by floodwater.

The shop opened its doors again in May, but Lasheen said late payments from Thames Water had affected her credit rating, and poor communication from the company had made it an incredibly stressful time.

"I would say that was one of the worst experiences I've ever been through. I'm quite a tough cookie but that really tested me a lot," she said.

"We've lost business, we are definitely down in turnover because our clients had to go elsewhere, which is totally understandable, but now we're back in and we're trying to build that business back up now."

Thames Water said its insurance claims handlers were appointed to assess each claim on its individual circumstances and they were still working with businesses affected to progress any outstanding cases "as quickly as possible".

A spokesperson added: "We appreciate that some businesses may be frustrated by the duration of the process. We're in regular contact with our insurance claims handlers and continue to monitor progress closely to ensure claims are handled fairly and consistently.

"As some claims remain active, it would not be appropriate to comment on individual cases."

Islington Council said Thames Water's response was not good enough.

"We've supported as much as we can," said council leader Una O'Halloran. "We're putting pressure on Thames Water.

"We just want them to pay out. It's actually their duty. There's only so much we can do. But we won't stop until everybody is paid out.

"It's disgusting they haven't got their act together."

Thames Water said it remained committed to supporting customers.

But for some traders on Caledonian Road, uncertainty remains as to whether and when they can start trading again.

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