Yeah, most likely the lugs have given way.
There are 3 lugs which are designed to break in the event of an accident, moving the headlamp rather than the headlamp simply breaking.
You can buy lug repair kits from VW directly (£24 for one side - contains all 3 lugs even though you may only need 1!).
You get to the headlamp by removing the front grill and the front bumper. Very easy to do - I've done it and I'm clueless!