Anyone with any long term involvement in flying should know all too well that to make profit from any General Aviation based activity while actually keeping all the paper work legal is difficult.
To increase instructors pay means one thing, pushing up the price of lessons even further, flying lessons have in the last 8 years increased by 40 to 60% in price. Any further increase in lesson price will only further reduce the student supply. Most schools now charge 140 - 160 just for a 152, PA28s are getting close to 200 an hour dual at some schools near London. None of these increases in the price of flight training has led to any increase in instructors pay. I don't really see how the GA industry could support better pay and conditions for instructors.
With fixed axis microlights becoming more capable and cheaper than most group A aircraft, then the future of light aircraft flying as a leisure pursuit is looking quite doubtful.