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I just wondered what legal footing I have to challenge this amount.
Durability is an implied contract term under the sale of goods act. A normal expected durability of a domestic refrigerator would be about 10 years. Tell them they have to repair or replace or you'll file a claim in court. An offer of monetary compensation below the purchase price is something you may accept at your sole discretion if you prefer it to the remedies the seller is legally obliged to provide. There is nothing to stop you making a counteroffer if you want to give them a choice. In respect of a fridge which fails inside two years I'd probably counteroffer that 75-80% of the purchase price would buy me off, but only if I actually wanted the opportunity to switch to a different model.
Quote the sale of goods act at them? IIRC they have to last a reasonable lengthy of time to be fit for purpose; I think 2 years minimum is the presumption for expensive things like white goods.