I think something should be done about instructors pay and maybe a union would be a good idea. I dont think £110/ hr is that much worse than say £95 or £100/hr. An increase like that certainly wouldnt stop me flying and im probably one of the more financially challenged students. You'd still get about the same number of students.
I am one of the seemingly small number of people who actually wants to be a flying instructor and to not move onto airlines but if I really couldnt make a living out of it then theres not much point in me saving up £25,000 to become something I wont even make a living out of.
If they did pay instructors better then you'd have more experienced instructors because they all wouldnt leave when they got however many hours it is they need to move on. Surely this would be better for the students as well.