Looks like a typo then, Rose petal.
Sadly, as most of what follows is probably explaining why the appeal was unsuccessful, it looks as if it's the first bit that's wrong, but I suggest you contact them to clarify the contradictory statement.
I've noted your comments about the decision in another thread. If you want to scan the letter and send it to the Appeals Box (or type out the key paragraphs, omitting any personal information), I'll have a look and tell you whether what they're saying appears to be lawful (i.e. meets the requirements of the Code). It's a long shot, and I wouldn't want to get your hopes up unnecessarily, though.
If you want to do this, the address for the Appeals Box can be found here:viewtopic.php?t=9907
- but will entirely understand if you've had enough of all this!