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I agree that slashing recoverable fees has caused this problem. But the fault lies with the solicitors, not the reforms.

The fixed fees were reduced by the average referral fee paid to claims management companies.

There was a clear intention to drive CMC's out of the picture to clean the industry up a bit.

Solicitors ignored the spirit of the referral fee ban by calling it a ‘marketing’ fee, or ‘introducers’ fee but paying the same cash to buy in the claims.

So the fixed costs were almost entirely swallowed up by ‘new’ referral fee. The only way for the solicitor to make cash was:
1) Deduct 25% of the client’s compensation every time, come what may;
2) Charge ATE at crazy prices and make money on the commission;
3) Kickbacks on the medical report fee and physiotherapy.

So the ultimate loser is the client.