Don't rule out the wipes. Manufacturers have a habit of changing formulas To be sure you could try a different brand for a week or so to see.
Yeah I'll try different wipes, but I am still using the same packet that I was using with the disposables, so the inflammation really does seem to be from the cloth.. Possibly the overnight nappy particularly as he was in cloth all day yesterday and it's only this morning he is inflamed. It's almost a blister it's awful