Sounds a bit like the old RPPL here in Aus, which has now been replaced by the "General Flying Progress Test", a passenger-carrying priviledge on a Student Pilot Licence, within the training area.
It works OK here. It's a bit like the UK PPL back to front, like doing the GFT before the NFT instead of the other way round like we do here. The "GFPT" is just a stepping stone towards the PPL. Gives the studes some incentive, if they can take their mates up and have some fun before getting stuck into the cross-countries.