Discovery Vitality Airline airline ticket refund problems

We booked international airline tickets through Vitality & Kulula and British Airways have cancelled the flights and have offered refunds on the flights. Vitality have informed us that we can get a refund less the booking fee. We disputed this since the flights have been cancelled and we have not received a benefit from the booking fee (and Vitality are getting paid back their portion of the airline tickets too).

They are refusing and we are also still waiting for the flight refunds.