Temporary fix...
I have ordered the overhaul kit, though don't know when it will arrive. In the meantime, I removed the m/cyl this evening to have a look.
As predicted, the bottom of the piston was far from flush with the bottom of the white nylon bush and the circlip. The circlip was easily removed (using the multi-adjustable circlip pliers I bought years ago but can't recall actually using since).
Unfortunately, there was no way I could prise the piston out. Being recessed, there was no way to get access to it with any sort of pliers, and though a little corroded in the recess, there was no way to pull it out. jamming an appropriately-sized screwdriver in there revealed it would twist, but the inward pressure required to twist it meant there was no way of pulling at the same time. And the hole from the other end of the m/cyl is too small to poke through anything strong enough to drive out the piston.
Solution: blow the piston out with compressed air from my Aldi compressor. Two minor issues associated with this method. 1. It blew the brake fluid in the tube from the reservoir all over the garage and my helper, Richard. 2. When the piston eventually emerged, it all sprang out all of a sudden. I caught the piston, but the spring disappeared across the garage. The piston still had the pressure seal on it, but the o-ring wasn't there. Whether it was broken and flew off (never to be seen again) or whether it wasn't there in the first place must remain a mystery.
The piston was very stiff in the bush (ooh err missus!) though and probably the cause of my problems.
Next task - remove the white nylon bush. Impossible. Tried everything I could think of including wedging a couple of small Allen keys under the bush and pulling, but to no avail. Stuck tight. Trying to remove it was starting to damage the inner surface of the bush.
I resigned myself to having to cut it out and broke out the Dremel to do this. I also rediscovered an accessory pack I bought - from Lidl, naturally - which had some small cylinders for fixing emery paper to. That lead to my brainwave: why not use the Dremel to buff the inner surface of the bush to provide a smoother fit for the piston?
So, that's what I did. Very carefully, and slowly, and with plenty of testing, I eased the gap out until the piston was a tight but smooth fit in the bush.
Found an o-ring that fitted the groove on the piston, fitted, re-assembled, and re-installed the m/cyl. Then remove the m/cyl to put the rubber boot back on, and re-installed it again. Quick bleed of the brake (well, not that quick - three reservoirfuls required to get the air out) and all seems to be well.
Tomorrow's run to work should reveal whether it is sorted. When the overhaul kit arrives I will need to decide whether to strip it all down, remove the old bush, insert the new bush, re-assemble, re-install, remove to put the rubber boot on and re-re-install. Or just leave well enough alone, assuming it is working properly now.
We will see...
But it certainly seems to be a decent temporary repair method if you don't have a new bush immediately to hand and can't remove the old one.