In many senses, yes it does because for certain programs LSE is in control of the curriculm at LES:
LSE is responsible for the academic direction of eighteen undergraduate degrees, the Diploma in Economics and Diploma in Social Sciences for External students, Diplomas for Graduates and the Access route available from the University of London External System. LSE External Study
I inquired directly with LSE several years back and they acknowledged that the diploma could be used for direct entry into LSE but it does not guarantee direct entry (of course). As was my situation then, for someone entering back into academia from a professional career, I believe it is one of the many options that should be considered!
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