Ok an update on the saga. For some strange reason last night the ps4 was turned on and some how the update installed. No idea how or why it suddenly decided to work, but it did. That is the good news. Now neither of the controllers work with Bluetooth!!!!! Spoke to Sony and they said they think the Bluetooth chip is faulty, that'll be £125 for repair. I replied it was all fine before the update. Just a coincidence sir. I'll give you coincidence you cheeky little chap. So now ordered a usb Bluetooth option, much cheaper than the £125 Sony option, so will see if this works. Should be here by tomorrow.
They are under the impression that quite a few people had the initial error and they can fix that quite quickly lol lol lol so hit them on Twitter or phone them, you'll probably end up initialising the ps4 and losing any unsaved data.