Santander have blocked my account after SFE payment

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I totally agree with everything you have said, I do not feel this has been handled in the correct way and I shall ensure to make another complaint after doing the CIFAS request to ensure it 100% is Barclays. If they handle it in the same way again, it will be being raised to the Financial Ombudsman Service.
I am unsure why I didn't go to the Financial Ombudsman Service straight away after the first complaint response, it would have been a lot easier!

It's not clear whether what you had first time round was a final response from Barclays. A final response should have an explicit statement that you could go to the Financial Ombudsman Service if you were not happy, and I believe there's then a time limit that applies -- if you leave it too long, you then can't go to the FOS.

It's unbelievable that you had to make so many visits to a branch. If you have the dates of when you did that you should include them in your complaint.

My sister in law is a management position within Barclays (the company not a branch) and she agreed that I should be complaining again and their response is unacceptable. She has been very apologetic, but obviously it is not her fault in the slightest. I am glad of her advice and everyone else's here.

I would just caution that you should avoid reference to your sister-in-law when you make your complaint just in case the bank somehow link her to your case. It shouldn't matter, but it's best not to pull her into it.