It has been a while since I went through the programme, but when I did it was slightly different to what zk-pontius describes. The actual line training is not 8 months. First you do the TR course (paid by the sponsoring airline) which takes about two months give or take a few weeks. Then you start your 6 months with the airline, but the actual line training is nornally 1-2 months depending on trainer availabilty. However, you will get the said 1,000 pounds per month in the 6 month period, but there is a big difference between flying with a trainer who asks you 300 annoying questions and normal line flying. When I did it, we received 2,000 pounds back from the 7,000 pound AQC cost (think it was 6,500 pounds back then though) once we finished the actual line training, i.e. after the first 1-2 months of the 6 month contract. However, I can not say if this has changed, so if anyone has new information I will be happy to stand corrected
During the TR course, you get 500 pounds pocket money to cover the 2 months (and NOT 1,000 pounds per month) but hotel and two meals a day are paid for during the course. During the 6 months with the airline, you have to arrange and pay for your own accommodation as you are now effectlively doing the normal job.
At those times, stage 2 and 3 were free of charge, but they cost the amount zk-pontius quotes now.