Update on this. Garage has said clutch needs replacing and possibility of the gearbox too as it’s making a bit of a noise. Worst case scenario but hopefully not both. Will update when done.
Woah! hold on there! Earlier picture you posted shows an almost empty clutch fluid reservoir. Lack of brake fluid and air in the system is going to give you exactly the symptoms you have.
Now, with out any remedial action having been taken, someone is telling you you need a whole new clutch and maybe a gearbox too! Well they might be right but I would bet on there being a leak somewhere in the hydraulic system - maybe at the quick connector, maybe a worn slave cylinder, maybe the master too. Whatever. This is what's causing your immediate problem.
I would take a systematic approach to this. Sort out the leak first. Even if master cylinder and slave both need doing, which is quite possible, these jobs are relatively simple and don't involve any major stripping out of components. Having sorted out this problem I suspect you'll end up with a working clutch. Having done this the clutch operation can be properly tested and an opinion formed as to it's condition - you can't see it, you'd need to remove the gearbox to do that so you really need to be able to drive it properly to form an opinion. If it then turns out that you need a clutch the gearbox will have to come out to do this and the slave cylinder will have to be separated from the bell housing again but only two bolts hold it on so you're not really incurring any additional costs by doing the hydraulics first.
The gearbox condition is quite another matter. Have the garage been able to road test the car? Wiggling and spinning wheels or driving the 'box with the car up on a ramp can often be miss leading and produce confusing results. I find road testing, listening to the box when idling in neutral and working the box up and down the gears allows a much more reliable diagnosis.
How old is the car and what mileage? our 1.2 Panda is a 2010 car with low 60,000 miles on it. 'Box is lovely and quiet. I just changed the gearbox oil and if you have a 'box which is only slightly noisy with some mileage on it changing the oil sometimes has almost "miraculous" effects (I myself don't like to go much over 50,000 miles which is why I have changed the Panda's oil almost as soon as we bought it last year). If you do this be very particular about using exactly the right oil - our Panda runs Petronus Tutela Transmission Technyx 75W-85 to API GL4 plus. Be very careful with transmission fluids it can be disastrous to use the wrong spec'd oil.
At the least I would be seeking a second opinion on this before committing to what is likely to be a pretty substantial financial commitment!
Hope that helps? Good luck with it all. Hope it just turns out to be a hydraulics problem.
Kind regards
Jock