BEagle - Part of the reason OATS are offering this is that they are moving fully half of the flying to the USA, no more rud and mubble until you start with the IFR training when it doesn't matter so much.
However, they cut their headline price by 5,300 UKP and, at the same time, increase the amount the individual has to find by 1,700 UKP in fees and 6-8,000 UKP in accommodation charges (if Murray_NN's info is to be believed), whilst a greater proportion of the course benefits from lower overheads in the US. That would mean that, overall, the cost of doing the course at OATS has effectively risen by 2-4,400 UKP!
If the figures are accurate, it would seem that OATS's slide to the level of the worst in UK training schools is unstoppable.