I have the same fault. The control rod on the driver side will have broken. This is a design fault by Peugeot, but they will not issue a recall. To fix it the dash must be removed. This is normally a full days labour. Some places will tell you that you need a new climate control system, but a repair can now be done to the control rod. You're looking at anywhere between £1000 - £2000 to fix.
Ross, January 2013