Although they call it a refund the £260 / £520 is actually the statutory compensation.

Under the regulation airlines are permitted to offer an alternative to the compensation but it's your choice whether to take the cash or one of the other offers they have made.

Bear in mind that should you be unable to use the vocuher in the time period specified (including because of no availability) you can't then go back and for the cash.

The 75k points also have a value outside of reward flights so that option may offer more flexibility. Before deciding have a look at the partner spend options on the VS and Virgin Red websites

Some examples would be

25k points gets you £100 worth of Eurostar spend for example.

Using the VS points + money option 75k would get you something like £400 off a flight (it's someting like £16.50 for 3000 points but please check)

It would het you 375 Greegs sausage rolls should that be your desire.

19k would get you a 12 bottle case of wine



Bear in mind that once you have accepted the voucher / points you waive your rights to the statutory compensation so you need to decide which you would rather have,