So I don't have a resolution but I do have an update which might help. I followed the link that was posted by becky_s22 and got a reference code to call Apple at my convenience. I gave the freephone number a call this morning and spoke to a member of the support team. I explained everything that I had done to try and resolve the issue, including coming on here. He did a remote diagnostic run on my handset and that came back as no faults. He was able to give me a list of places that are Apple approved outlets (not necessarily and Apple store) that were open (via phone due to Covid-19) that I could speak to and arrange for it to be repaired. I have to say he was a really nice and helpful guy and although he wasn't able to fix it, I must say I was really happy with the level of support and his customer service abilities.
I gave the nearest outlet to me a call and was able to talk through the issue on the phone once again. He informed me that to get the matter investigated and fixed I would need to raise it through the Apple support website and arrange for it to be posted to them. The fix if it was for a part and the labour would be £180 and for a whole new unit if it couldn't be fixed would be £380. There current turn around via mail upon receipt is 5 working days and there would also be a £15 posting fee for it to be sent back.
I have decided against doing this as I really don't think that this is a reasonable cost. In fact the more research I have done into the matter (knowing that it can only be a hardware problem) has only heightened my indignation at this price. What me and my partner have decided to do is to try and replace the charging/microphone doc ourselves. My partner has a lot of experience with these types of things and has all of the tools required. So I have ordered a replacement part and we are going to do it. I have also done a lot of watching of different YouTube tutorials to ensure that it can be done safely without causing further damage.
I don't recommend this approach for those of you who don't have experience of doing something along these lines before but given the issues it does very much sound like it is this part that is faulty (it also has a receiver which explains issues with connecting to wifi). I will let you know how I get on and share the YouTube video and the retailer that I used for the parts.
Fingers crossed