Are Speed Awareness Courses Legal?

In April 2007 the rules on speed camera funding were changed in recognition of the fact that cameras were being used a revenue raising first resort by speed camera partnerships, who were no longer allowed to keep the money from fines - it had to be sent to the Treasury instead. Now a way has been found around this by so-called 'Road Safety Partnerships'against a background of funding cuts by local councils for speed cameras. Revenue raised by diverting drivers caught driving over the speed limit onto 'speed awareness courses' is now being used to fund cameras as this money doesn't have to be directed to the Treasury. Private companies are often used to provide these courses and they take a slice of the profits. The cost of courses is being raised to around £110. In Staffordshire, in an effort to divert money from fines that would go otherwise to the Treasury, thresholds for being eligible for a speed awareness course have been raised from 10% plus 6mph to 10% plus 9mph over the speed limit:

http://www.thisisstaffordshire.co.uk/Drivers-fined-pound-543-000-just-10-speed-camera/story-15041861-detail/story.html

The use of speed awareness courses poses an interesting question. Is it legal to divert drivers from the justice system for a fee paid to a 3rd party such as the police or a private company? The answer may well be NO! Someone has done some digging by making Freedom of Information Act requests to the Ministry of Justice since late 2010. Full correspondence here:

http://www.whatdotheyknow.com/request/speed_awareness_course_legality

Dear Ministry of Justice,

Exceeding the speed limit is an offence, and as such has
traditionally been subject to the legal process.

I have noticed that police now have the power to avoid the legal
process and can forward some`clients`to private companies for
`reeducation` instead.

Obviously this system of bypassing the traditionally legal process
and receiving points must have been allowed by a change in the law,
and I would appreciate knowing where the amendments to the law are
described so that the terms and conditions may be viewed.

Yours faithfully,

Dennis Fallon

The upshot is that the Ministry of Justice can't provide any evidence of the required change in the law:

Dear Mr Fallon,

Thank you for your email, the information which you are requesting is
not held by the Ministry of Justice, may I suggest that you contact the
Department for Transport as they may be able to assist you with you
request.

Regards
DACU