There's this bit from part-FCL:
5.Applicants failing or being unable to complete the entire ATP(A) course may apply to the competent authority for the theoretical knowledge examination and skill test for a licence with lower privileges and an IR if the applicable requirements are met.
But as your candidate is not failing the course, I don't think you can go for a PPL. I'm pretty sure that an integrated course can only lead to the licence that the course was set up for. I cannot find the relevant bit in part-FCL right now though.