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MOTHERCARE TEST SITE - Their error - do they have to sell me the item?

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Am hoping someone can help..........
I recently placed an order on the Mothercare website - unbeknown to me that it was actually their test site!!!
After receiving an order confirmation from Mothercare confirming my order - they then contacted me to say it had been placed on their test site and they cannot honour me this item at this price (item was £85, should be £132) but as a gesture of good will they will offer me 20% off everything on their website.
Are they allowed to do this?!? In my opinion I have received an order confirmation stating that they are providing me the item at said price and that it will be dispatched!!!
I 'paid' for the item via Paypal so the money hasn't been taken, but still, is an order confirmation not a contract that they must stick to?!?
Thanks for looking - I feel really annoyed!!!
D x

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