OK, I think that your smaller replacement transformer would be an adequate replacement.
As for 20VA vs 25VA, yes your thinking is a little naive, just because a fuse is rated at 1amp, that does not mean that it passes 1 amp in normal day to day operation.
The transformer being condemned as faulty by the boiler man surprises me.
Transformers are usually very reliable, there is not much in them to go wrong.
Usually, but not always, failed transformers are burned, black, crispy and smelly.
But, for the expenditure of a few pounds, try it.
It cannot make anything worse.
JimB