UPDATE!
The latest firmware release of UI7 appears to have addressed the setpoint issue as when I went into settings Advanced->Variables, ModeStatus was already configured to HeatOn.
Some things to note however, when I first included the device (position L in the thermostat) UI7 recognised it and showed a device that had about 4 buttons (HEAT,COLD plus two others) then after a while (can't remember whether it coincided with me turning the dial to LI and pressing 'configure node right now' or not) all the buttons disapeared (see attachment). When I turn the thermostat dial to demand heat the device information on the screen shows the new stepping temperature but there is no indication that heat is in demand. I have associated group 2 on the device to the Zone valve of the kitchen, saved and configured the device successfully and it DOES work (zone valve and boiler kick in) but no visual indication on the thermostat device 'icon'. I'm sure in UI5 there was a visual indication. Can anyone confirm please.
Also quickly created a test scene to manually change the setpoint and can confirm that once the thermostat woke up (5 mins) the new setpoint was displayed on the thermostat LCD.