Your pa yp al is dead so yes in "essence" your eb ay account is dead - you do have the option of getting a separate payment processor (I don't know what works in UK) but examples include moneybookers, etc and persuade your buyers to pay that way. There are creative fashions of persuasion =)
The other - and less viable idea - is to just attach a new pa yp al BUT you will not see money regularly in all likelihood - you will have to keep operating with the the understanding that all money is held until 180 days AFTER account gets axed.
All the best.
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