You dont need to offer anything at this stage they are prepared to discontinue the claim if you agree to a " Drop hands Settlement " which basically means Settlement under which each party agree to bear their own costs.
You just have to agree to it.
Don't touch them owe me £500 since January 2019 make excuse after excuse. Seem they always have software problems sending money out. Keep saying they will call back or email nothing been chasing it now for 6 mths the phone staff always have the same banter we will chase it up and get back to you then nothing!