Equalities minister Lynne Featherstone told the Commons last night that the government is "considering" a public consultation on the Riot (Damages) Act, after it was revealed that 707 compensation cases in London remain outstanding.
Answering Labour MP David Lammy, Featherstone said: "The government is committed to reviewing the... Act.
"It is an old Act and we need to ensure that the legislation is fair and reflects a modern policing world.
"We are considering holding a public consultation."
She also admitted that there were 707 outstanding cases in the Metropolitan Police Service.
Lammy blamed "bad bureaucracy and poor administration" for the "inefficiency" in processing claims for riot victims.
The Riot (Damages) Act 1886 has been administered in an "overly bureaucratic and unprofessional manner", he added.
Fellow Labour MP Lilian Greenwood pointed out that vehicles are not covered under the act, despite many cars being burnt-out as a result of last year's riots.