Hi,

I have a 3.5 year old 206 HDi Turbo, which has had no problems since I
bought it until the last 2/3 months.

I now have an issue with the warning "Anti-pollution fault" and a loss
of power (usually only wet/cold mornings).  I have taken the car into
my local 'helpful' dealer, who insists that it is the fuel pump; they
found 'swarf' in the fuel filter and they say that is an indication of
the fuel pump breaking up.

Has anyone else had similar issues, and did they end up having to fork
out the £600 (approx) for the part or was there another solution?

Erm, they're expecting you to PAY for that on a 3.5 year old car (with I
assume 35,000 miles) ? It's an obvious manufacturing defect - fuel pumps are
NOT consumable items !
You need to be speaking to the dealer Manager and Peugeot UK and Trading
Standards if necessary - I certainly wouldn't be footing the bill if it were
my car !
The "Sale of goods" act specifically states goods must be of "A reasonable
and satisfactory quality" ... which is clearly not the case here. And it's
hardly "Usual wear and tear" unless you've done starship mileage.

This is a common problem with the HDI engines.  Peugeot's answer is to
replace the entire fuel system from tank to injectors, I was quoted £3000
two years ago.   If you are lucky (as I was) the swarf will not have got
passed the filter and it can be fixed by a non Peugeot mechanic by flushing
the system out and replacing the pump and filters.  Even then it cost £800
for my 406 so if you can get away with £600 you are very lucky.