Some excellent responses on this issue. The only thing I have to say is that it's not true that students can't afford a higher rate.
I noticed that 99% of students could easily afford another £40 an hour. While I came to work in a clapped out van and went home to a caravan they were turning up in Aston Martins and Jags and went home to a five bed country pile or were being subsidised by Mum and Dad.
Cheap flying makes students lazy. It's so cheap compared with other activities that they can afford to ignore the books and any reflection on their performance.
They just keep paying and paying until miraculously the instructor gets them up to the standard. Which means instructors have to work far harder to get students through and often they are totally unsuitable candidates.
If the rates were higher students would work harder or drop out and the school's would benefit by having committed instructors and well looked after aircraft with the same turnover as before.
What is happening now is that the experienced instructors are packing up and will not be mentoring new instructors which is inherantly unsafe. And the school's will suffer from not having any instructors when they need them, thereby losing clients and having a greater risk of downtime through damage.
Thanks to all who offered advice and potential career paths. Sadly I am letting my ratings lapse and will be hanging up my wings for good. It's been a blast but not a job I'd recommend or choose again if I had my time over.
Having been a total aviation person most of my life, my father was with C.A.T. Hamble, now I find myself in dire circumstance, homeless and broke, and have really only a very sour taste in my mouth to remind me of all the hard won experience and sacrifice.
Regards to all my fellow aviators. Keep the flow undisturbed.