Well it is clear the dealer isn't going to play nicely, so I contacted Customer Care, below is their response.........
Thank you for contacting us today.
I have received confirmation from the Warranty Team that the cost to reprogramme the Care Key is not coverable under the manufacturer's warranty.
As per the directive for our retailers the software conversion is free of charge, however, the retailers may charge for labour or apply a service charge for this to be carried out.
I hope the above information, clarifies our position.