iPhone restore “cannot connect to iTunes Store” in purchases step. Successful if I skip

I have a new iPhone and am restoring it from a backup of my current phone. I can select a backup time/date successfully. All goes well until I need to restore purchases from my account. This ends in the error “there was a problem connecting to the server.”

If I enter my password incorrectly, then I get an error saying password is incorrect. This suggests the phone does have a connection.

If I skip this stage, the backup continues.

Can anyone suggest a solution?

If I skip restore purchases, can I recover them at a later stage?