I enquired today and was told the £19,800 offsets the £76K price of the training done by FTE. Flybe pays it directly to FTE just like last year. They also fund the type rating, which they deliver at their own training center and this need not be repaid unless you leave before 36 months service.
Last year Flybe required the FTO to guarantee conversion to CPL/IR if the CAA or JAA withdraw approval for MPL or if Flybe goes to the wall and can't type rate the cadets. I haven't seen mention of this so far this year.