The family of a baby who died in care after being drugged and harnessed to a bed have described a £13,300 compensation offer as an "insult".
Sarah Specterman was 11 months old in 1975 when she was found hanging from a harness that staff had used to bind her to a top bunk.
Sarah had only been in care for 12 days and was crying for her mother when she died in the Chevington children's home in Croydon, south London.
Lambeth Council has now offered the family the money as part of a scheme that has paid out over £128 million to abuse victims.
The council admits Sarah was in a "state of permanent and unremitting distress" throughout her time at the home and was "force-fed and inappropriately medicated to bring about sleep".
In a letter making the offer, Lambeth said: "The overall picture is of a very distressed baby whose needs were not met and who was treated harshly by staff. She was also subject to presumably uncomfortable, if not painful, restraint."
Sarah's brother Russell, 55, who was himself moved 47 times and drugged with tranquilizers while in Lambeth’s care, says pyjama chords were also used to restrain his sister.
Russell, who has set up a petition calling for a new inquest, said: "The way they've treated our family has been an utter disgrace. I'm disappointed more than anything else, nothing surprises me with Lambeth anymore.
"They're not sorry for what happened to us, they're just sorry they got caught.
"What sort of human being would take a little baby out of her cot just because she was crying and tie her to the top of a bunk bed? She's dead because she was crying for her mum and she wanted some love and care.
"Had the police known then what they know now, there would have been a charge of corporate manslaughter."
Barrister Imran Khan, who is representing the family, said: "Sarah’s death was the result of negligence by Lambeth Council and her family can only imagine how awful her last moments were.
"No amount of money can possibly compensate for the loss of a child but the amount ought to reflect the circumstances of the death, the gravity of the negligence and the devastating impact on her immediate family. In Sarah’s case the family consider that the compensation offered is an insult to them and Sarah’s memory. I agree."
Raymond Stevenson, of the Shirley Oaks Survivors' Association (SOSA), said: "We do not believe it was an accidental death and once we have spoken to all the former residents of this home we will publish our findings. The final insult is determining that Sarah's life amounts to £13.300."
Evidence given at the inquest in November 1975 revealed there was no one on duty on the night Sarah died and that resident staff slept on another floor.
According to an internal Lambeth report, Sarah was one of 12 youngsters at the home at the time, including another baby and five more aged under four.
It said the only member of staff sleeping in the unit at the time was a teenager with no childcare qualifications.
The 19-year-old made no checks on the children overnight and Sarah could have been hanging for up to eight hours, the council found.
The papers, which referred to Sarah as "it" and a "difficult child", reveal that she was being given the sedative phenergan.
Current medical advice states this is not suitable for children under two as it "can cause severe breathing problems and death".
An inquest jury returned an open verdict after hearing that Sarah's right arm had slipped out of the harness used to keep her in the bed.
She had then squeezed through a four inch gap between the bed's safety rail and the mattress causing the free strap to tighten around her neck as she hung there, the inquest heard.
Sarah's mother Rita, who died aged 67 in 2002, said at the time: “If I had done that [been responsible for the baby’s death], they would have put me in Holloway.”
The Independent Inquiry into Child Sexual Abuse strand on Lambeth care homes heard there were up to 48 deaths of children in the care of the council between 1970 and 1990.
A Lambeth Council spokesperson apologised to the family. He said: ““People were incredibly let down, and we are committed to righting the wrongs of the past, as far as we are able. That includes addressing the concerns of the Specterman family.”
Russell's petition calling for a new inquest can be found on its 38 Degrees page.
