Apologies if this is out of date but certainly over 1999-2000, it was possible to use the yearly educational allowances to fund ATPL(A) exams by distance learning and then get a friendly Supply Officer (or equivalent) to sign you off for Hotel expenses while at Oxford Air Training for the exams. In the final 18 months, I then used my resettlement allowances to fund a non approved IR as it was a 'professional course'.
It may be that the PPL is regarded as recreational rather than professional study. Would it help if you asked for the money for a CPL?