Your Child would have automatically a British Citizen (by law) if you had naturalized prior to her birth, however as you hadn't she does need to registered including paying the fee. As It wasn't the Home office fault I don't see why they'd waive the fee for you. Maybe you should contact the company at fault to see if they'll pay as it was their fault, however I doubt they will.
Why have you waited so long to sort this out? You would probably have been better off if you sorted this out over ten years ago plus the fees would have been lower.
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