Thanks for all the suggestions guys, but, still have the problem.
I have been to mnt-system/boot/syslinux/syslinux.cfg file as superman suggested and the file there looks just like the one I posted earlier i.e.
DEFAULT loadconfig

LABEL loadconfig
CONFIG /boot/isolinux/isolinux.cfg
APPEND /boot/isolinux

Anyhow I have added the line LANG=UK and have even tried LANG=EN
but still no change.
Funnily enough when I edit the syslinux.cfg file I get the = sign on the right key so it must be working ion that part of the system, howver when I go into Libre Office Writer the keyboard is the US layout.
I was initially very impressed with Knoppix but I have to say that a choice of keyboards would seem to be the basic tweak and should be easier to implement.
I have about 30 years of experience with computers and even I am struggling here, goodness knows what a complete tyro would make of it.
I think I will wait and see if a new release fixes the problem.