I was quoted 2200 to get it fixed by fiat. A local guy can do the job for 300 inc vat! Fiat are a total rip off!!! Thanks for all ur help folks, much appreciated!
Fiat will repair this by replacing the steering column with a complete new unit.
An independent garage will likely remove the column and either exchange it for a remanufactured unit, or fit a secondhand replacement. This is inherently a cheaper way of repairing the car, but I doubt Fiat will authorise their franchised dealers to repair cars using anythng other than factory supplied parts.
As frupi says, £2k is still way OTT; with inflation since his was replaced under warranty and a falling pound, I'd have thought somewhere in the region of £1200-£1300 for a franchised dealer repair using new parts.
IIRC reputable remanufacturers like Western Power Steering will charge in the region of £250-£300 for an exchange column, not including fitting; I'd be asking your independent some searching questions about how exactly he is going to repair this, and what source he will use to obtain the necessary parts.
It's not a job I'd want to see bodged; failure at speed could catch a driver out and result in a nasty accident. The repair requires removal & replacement of the steering column airbag system and whilst that's straightforward enough as jobs go, you need to be 100% certain it's done correctly, for obvious reasons.
That said, an independent should be able to do a quality repair using a properly remanufactured column for a fraction of what Fiat charge.
And yes, these fail more often than I'd like to see. It used to be a relatively common problem on the Mk3 Panda, but there was a rumour that Fiat had beefed up on their component quality for the near-identical 500 column. We still hear of a few cases like yours on the forum, though most steering power control issues are battery related, as folks have said previously.