It's been a while since I built a cavity wall, but the insulation goes tight to the face of the inner skin of (usually) lightweight concrete block, i.e. Thermalite or Celcon and I'm sure other flavours are available. Joint in the insulation boards should be taped with silver reflective tape.
As for spec' it will also depend on what other provision the specification makes for insulation to the floor slab and ceilings etc.
Unless you are 110% sure that you don't have any damp issues I would avoid retro full fill cavity insulation.
Best................MD
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