Disappointed with a Pendleton e-bike

[Sturmey]

The former, I can freewheel pedal and the motor kicks in but it doesn’t work as a cycle ie the back wheel doesn’t rotate

Both I and another member had a problem with the pawls sticking in the Pendleton freewheel. I actually dismantled the freewheel and found that the pawls were sticking in their wells due to the grease becoming hard and solid. I just cleaned up the freewheel pawls and the bike has worked ok since.(over 4000 miles).
It may be possible (or even probable) to fix this without removing freewheel or wheel by simply getting some light oil or solvent into freewheel to soften the hard grease.

 

[Nealh]

Why I asked sounds like freewheel pawls sticking.
If you take it to Halfords they will sort it if you don't do it. Most likely they won't have clue or mess around so will replace the freewheel and it will probably happen again so the 3 in 1 oil / wd40 trick should do the job.