Hi Geoff,
The auto-ignition temperature for the items you're talking about (at which the material will burst into flames) is much higher than will be reached adjacent to hot water pipes. You're right to think that this auto-ignition temperature will reduce because of the continuous heating - the material will dry out completely and, depending upon what it is, degrade to a certain extent. But it is extremely improbable that the auto-ignition temperature will drop anywhere near as low as 100 degrees C. Pyrolysis, as commonly conceived, will not occur but you may have slightly increased oxidation (technically slow combustion) of the material due to the heat (newspaper may go yellow or brown and get thinner over a long period, for example).
Insulation can make a difference and I imagine this is one of your concerns. It is theoretically possible for the temperature in the material surrounding the pipes to become hotter than the pipes themselves but you'd have to have near perfect insulation and extremely thick and dense insulating material. This tends to self regulate because the pipe itself, although very hot, becomes a heat sink as well as the outside. I really do not think this is going to be a problem in terms of an ignition source.
I might still be unhappy about the pipes because they might pose a burns threat to the occupiers - but probably not if they're no hotter than, say, radiators. You can make a judgement on that.
You could point out to the occupiers that materials in close contact to these pipes will be damaged over time by that contact and encourage them to leave an air gap around the pipes.
It would be different if they were storing paints or thinners or aerosols or similar near these pipes - if there is any risk of this happening then you should insist on the shielding/boxing that you referred to.
Might also be worth checking any fire stopping around the pipes as this is a classic situation for compartmentation to be breached.
I have come across fires starting because combustible materials have been in contact with incandescent light bulbs but they are much hotter than your pipes.
Stu