I had a Nissan Micra to teach my son to drive. It came with one transponder key but no master key so I could not get new keys programmed. I separated the plastic key and took the transponder out. It is a little glass tube the same as the vet uses for registering dogs!
I used some hot glue to stick it in the steering column cover by the antenna for the immobiliser and then got normal keys cut.
As a test to see who is right about your key, get one cut and see if it works, cheap test! If it doesn’t work, you can then decide how to proceed.
BTW, I love Timpsons, especially the way the owners run the company for the benefit of staff BUT I have come across a couple of their places (in supermarket car parks) that have NOT been a credit to the company; just saying!
This is a bit of a pain to be honest. Your car is a MK2.5 with rolling security, so the chip data and corresponding data stored in the car is updated on every use. This means that any additional transponder has to be programmed to the car as clones do not work.
Relatively easy to get another key and chip but will require an 8 digit codeword unique to the car or rather the ecu/immobiliser to allow the programming of a transponder chip with data loaded.
The alternative you have mentioned is what most people seem to choose to avoid the programming. Please feel free to private message me - perhaps I can explain how it works in a way that you can accept and will save you the hassle and expense of transponder chip programming. £140 is a good price for a dealer to do this for you and supply key/chip.
The only chip that will work in this application is a Temic Crypto 8C transponder - TK5560A or TK5561A.
Not that common as only a few applications but surprised that the dealer unable to source.
Best source is a chip from a MK2.5 key as has to be loaded with data to program.