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I did call paypal, but they weren't terribly helpful. The problem they say is at your end.
However I usually use a security key which involves paypal sending a 6 digit key via text. I deactivated it and it worked fine, the recurring payment went through right away.
Perhaps if anyone else has the same problem that might resolve it.
Hmm.
That is very weird.
We have a Stripe account somewhere (it's used by the shop when we sell jerseys), I could perhaps figure out how to get that working as I know they do subscriptions too.
The only catch is, I'd need to move the money to PayPal each month as we actually pay our bills from the PayPal account.