Fixed it! I took the plunge and dismantled the hub last night (it was that or do the washing up). I undid it all and waited for springs, bearings and bits & pieces to fly everywhere but it all came apart very well. It is a Sturmey Archer single speed hub, very like a Raleigh Chopper style rear hub, but only one set of planetary gears in there. A lot of the parts are identical, it even has the same axle which is hollow on one side for the gear chain if it had gears.
The fault was this: The pin that forces the drive clutch in place had broke, so that's why the freewheel locked up then splipped as the loose bit of pin was rattling around inside and got jammed in the gears. Without that pin in place, the drive clutch was able to slide away from the drive pins so all drive was lost as soon as that happened. I machined out a suitable sized (10mm ID) nut so that it forced the drive clutch to connect with the drive pins once the clutch spring was fitted and hey presto it all runs smooth with a lovely shopping bike tick tick tick tick when freewheeling. I would have taken phots but I just tought I'd have a look at it and before long it was back together. My son is well happy that the mags are back on
Thanks to
adeshere for the advice, I think the 16" hubs are completely different to the 20" ones from what I can work out. And no sign of a coaster either, just an unnecessarily huge hub!