Yes, the NPPL Policy and Steering Committee have indeed formed a FI (SSEA) sub working group and the initial recommendations have been circulated to the CAA.
The SWG will be working in concert with the MDM032 EASA group to ensure that the requirements for the forthcoming European Light Aircraft Pilot Licence Flight Instructor are encompassed by the FI (SSEA) proposals.
The aim is to make the flight instructor rating more readily attainable by experienced PPL holders, not to attract inexperienced minimum-time wannabe airline pilots.
Lack of ab-initio NPPL SSEA applicants is entirely down to poor marketing by industry. They said they wanted the NPPL, but are doing little to promote it as they can extract more money from a JAR-FCL PPL trainee....