There are two things that need balancing here:
1) To attract good people you need to pay well.
2) The wealth gap between the rich and the poor is too large.
Personally, I feel MP's are underpaid. Something around £75,000-£100,000 is reasonable, with the PM on something like £150,000. To get decent MP's you need to attract decent people from industry and that's roughly what the salary expectation would be, accounting for likely longer working hours for an MP. Unfortunately, we don't live in much of a meritocracy so paying decent wages will also attract spivs. Paying such salaries to MP's will only work if the electorate hold them to account.
On the other hand, the minimum wage also needs to increase to somewhere around £9ph. This would reduce the welfare bill and ensure taxpayer money no longer subsidises company profits. For small businesses that would be adversely affected by such a change, business rates should be vastly reduced.
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