Its the normal way to do it. One end should be sealed (but never is in my experience) and the outer sleeve made good appropriately (sand and cement normally).
I'm not sure if plastic is an appripriate material, but to be honest I can't think why it wouldn't be.
Unless they have changed things (again sighhhhh), it is ok to use plastic pipe,
you can use pipe of the same material in which case copper pipe to sleeve copper pipe or iron to sleeve iron, better than plastic as it wont melt in fire, but who cares.
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