You'd be OK to put chipboard floorboards down, but don't go overloading what you put up there - its very tempting to do so.
Kingspan / Cellutex is a far better insualtor than fibreglass - about 2x better, so 70mm thick slabs put in the joists would be equivalent to 140mm of fibreglass. Its more than twice as expensive (for the same thickness), but given you have a fixed depth, that's your best solution. Both products are better than vermiculite - can't remember by what factor.
As to whether you can get a grant, check with LA. I suspect you can't as there's some insulation already up there - unless you clear it all out first?