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If you need the car and can't afford to just buy a new one, I wouldn't fuck around and risk the timing chain breaking.
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My understanding is if it's a chain it's not going to snap like a belt but would just get louder etc - will it lead to something more catastrophic?
Yes. Yes it could. It sounds as though the chain has slipped and ruined your valve timing, which would explain the drop in performance.
What engine code is it? There were lots of evolutions of the TSi engines. Some are more prone than others to issues.
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The only bit I'm not sure about here is why did it rev higher?
If the chain slipped then the cam and crank shafts are now out of alignment. That wouldn't make the engine rev all of a sudden, if anything it would bog down, misfire, stutter etc.
A rev going up a step hill says clutch slip to me.
Now it could be the unexpected rev from a slipping clutch caused a jump in timing chain but the timeline (pun kind of intended...) doesn't match up to me.
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@CYOA
Had an engine light come on last week on my 2010 1.2 skoda yeti. I turned left up a steep hill and immediately it revved louder than the pressure I was applying suggested and the light came on. Drove OK but sounded/felt a bit off so I came home, haven't driven since and took it into the garage this morning.
They're calling and saying it's a timing chain replacement and with a service comes to £1300.
Thoughts? I use the car for work to ferry quite a lot of heavy equipment around - usually 500 mile round trips once or twice a quarter. The rest is just day to day driving around devon and cornwall.
I just got paid for a big job this morning so am lucky in that I can afford to get it replaced. Do I need to? My understanding is if it's a chain it's not going to snap like a belt but would just get louder etc - will it lead to something more catastrophic?
Bought the car 3 years ago for £6k but I'd never find one in as good condition atm for a similar price. It's done 60,000 miles. I do 10,000 miles a year. (Bought it with 30,000 on the clock).
Edit: https://www.theguardian.com/money/2016/may/07/skoda-yeti-known-fault-timing-chain sounds like it needs doing. There goes the new dual monitors @chrisbmx116