The NPPL is devolved to the NPPL Steering Group for licence issue and 'regulation' but I'd imagine they have no legal teeth to remove a licence nor have anything to do with legal action that might be taken against a pilot who breaches ANO regulations.
That isn't correct.
The NPPL Policy and Steering Committee evolve NPPL policy recommendations, but these must be approved by the CAA.
NPLG Ltd processes licence application paperwork for NPPLs with SSEA and/or SLMG Class Ratings, as does the BMAA for NPPLs with Microlight Class Ratings; however the paperwork is despatched to the CAA and licences are only ever 'issued' by the CAA.