VLookup with condition

Hi Guys,

I have a spreadsheet that works out an area from a postcode and then gives a rate based on the area and a age. I have attached the spreadsheet. now it works on the red test sheet, using the red postcodes and rates, but it wont work for the blue test sheet using the blue postcodes and rates.

could anyone help work out the problem and also explain why it hasnt worked?

Thanks

Clare