Sorry but I have never faced this situation and need some advice.

I had some issues with the recent BAH (10-day holiday including 7 hotel nights booked via BAH), the details as follows:

1) Luggage
BA failed to load my luggage in my flight to MIA (there was one-night break in Miami, final destination was LIM) and could not deliver the next 2-3 days. They could not confirm when I could get the luggage and I moved around, asked them not to send it to LIM. They did not inform me of anything afterwards, on my return to the UK, it appeared that my luggage was sitting in LIM.

2) Flight delay
My last leg to ABZ from LHR was delayed by 3 hours or so. We were told that they could not get out the luggage cargo after boarding, they had to cut off something to remove it. It's BA1308 on the 10th of June, I tried to find more details on public websites, but could not find. Eventually I needed to change my return positioning flight (though on the same day).

Since I did not have the luggage through the entire holiday, of course I bought several items which were supposed to be with me. The total was £700 or so, which BA covered. Additionally they offered £250 BA credit.

I just wonder if this is reasonable. I had to waste the first two days for shopping as well as calling BA and BAH to track the luggage. I don't really consider the £700 or so as a 'compensation' as I just bought necessary things, and responded asking for a partial refund of the BAH (not BA credit). They refused it and recommended submitting the case to CEDR. Since I have never done this before, wanted to ask you if it's worth proceeding with CEDR.