Lee Royston of Red Balloon has told me that they've got funding to offer a limited number of free places to home educated children on the pilot who meet the admissions criteria, so you wouldn't need to get your LA to pay. New virtual learning centres are opening in South Yorkshire, Braintree and Eastbourne apparently. More info here
edyourself.org/news/index.php/#280911RedBalloonofAir
Red Balloon was set up to offer education to children who had been badly bullied in school.