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Help please, should I pay?

My partner received a letter a while ago about a parking charge from NCP. We had paid for 3 hours but were caught on the ANPR camera exiting late. It said that we had not paid the Initial charge however we never actually received that letter. I wrote to them explaining how we never received the first letter and that we had got back to the car before the time we had paid for expired and how I had to feed my young baby who is exclusively breastfed as there was no where else to do it and she was screaming her head off. So we would have only been about 5 minutes over our paid time. (although we got back to the car on time so I never even thought that we would get a ticket because we hadn't exited the car park within the time paid for. I never even knew that was what you were supposed to do!?) I never got a reply to that letter and we have now received a final demand letter saying that the next stage is court and we need to pay £160.
I know all the forums say to ignore but I'm now so worried that I've messed up by writing that letter and admitting fault. I don't have £160 but I'd rather pay that than potential court fees! What should I do? Carry on ignoring or just pay up?
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