Quote:Turning it right down makes the boiler go off and right up makes it go on...
If it really is controlling the boiler (and the central heating is off) it's hard to see what could account for the water getting too hot. However, normally you only have to turn the dial a few degrees for it to click and the boiler fire up or shut down. If it only controls the boiler when you turn it all the way up/down then I agree worth trying another stat.
One problem with hot water systems is that 60C is hot enough to burn a child but if you turn it down there is a risk of Legionaires disease. I did wonder if somone had just turned the stat up. eg perhaps it set to say 50C before and someone turned it up or knocked it? Sorry if thats a rather obvious suggestion.