I would very much like to get a grant for our students. The only problem is that, on my reading, 'the scheme', only works if you are part of a Further Education (FE) College or University. This allows you to pick up government funding and also not charge VAT. The disadvantage of 'the scheme' is that, according to the CAA's rules, the FE College are now the FTO and they are sub-contracting the training to the groundschool provider. As the FTO the FE College should hold the approvals. In your case they don't seem to.
I am intrigued as to how you have managed to make the scheme work. Please expand. Have the CAA approved the commercial relationship? Have they agreed that Bournemouth & Poole FE College don't need approval? Are you charging VAT? If not, have the local VAT office agreed the VAT treatment is correct? If you have managed to get round these hurdles I think the whole industry will benefit, it's quite exciting.
Sorry to get off topic geraldn, this is fascinating!