yes, its a must, if you dig the floor up..
its like this...
building regs state that if you remove any part of a building that contributes to its insulation value, i.e. floor, walls, roof then when you put it back it MUST conform to CURRENT building regs...
however, if you just remove the screed only, youll be ok to put plain old screed back again...
dig the floor up and youll be in for more than you bargained for...
I think current regs state 150 hardcore, 100mm cellotex (think last year was 80mm), 100mm concrete, 75mm reinforced screed...
Planning Portal - Approved Document L
the above contains all the insulation information youll need... it relates to existing buildings as opposed to newbuilds..
try this too
Planning Portal - Ceilings and Floors
r.e. damp floors...
common, depends on the age of your house but you may find its just a slab of concrete sat on top of mud with no membrane or hardcore....
you may find its just a dodgy membrane, thin polythene was widely used years ago..
liquid dpm as already mentioned is the way to go if you dont want to go the whole hog...
usually coupled with a tanking system up the walls...