I immediately smelled a rat;
PayPal is one word, it has no gap.
Skype is a free service, I've never been charged for it.
They didn't have my name or address in the email.
There was a link to a "dispute centre" at the bottom-
PayPal don't send links in their emails.
I have reported it and deleted it. I did not click on that link.
Please be vigilant everyone, do not fall for such scams, never ever click on links and only sign in directly on the main website