Interest german article http://www.zeit.de/wirtschaft/unternehmen/2015-10/volkswagen-abgas-affaere-rueckruf-eintauschpraemie
suggests a potentially very attractive trade program for those with the 1.6l engine, presume due to the logistics and cost of repairing them. I'll await a British article.
I've also heard that our cars may fail MOTs if the recall isn't carried out. Personally I don't mind having the work done if it doesn't impact the performance of my car, however I'm almost certain whatever they do will make it a watered down version of its previous self.
I got my mot in November they are going to need to get a move on to do the recall work or I will be without a car paying for insurance road tax etc.