Would steer well clear of that place then if a student. Shame to pay for illegal flying and have your PPL application turned down.
Remember that "employed" does not mean being paid to do something. You can be "employed" and not be paid.
The only way a PPL can provide PPL instruction is where no money changes hand for the instruction.
I could bet that it is not a case of train with instructor A and the rate is £xxx per hour but train with instructor B when the rate is £ much less per hour because they are a PPL. More likely that the rate is £xxx per hour regardless of who you fly with.
Perhaps the CAA need to pay a visit or atleast a call to the General Agrigate and see what is going on.
You are such a snith Bose
Regards,
DFC