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@ojeffcott
Quick update:
The Justice Committee have just released a report on increasing the Small Claims limit:
https://www.parliament.uk/business/committees/committees-a-z/commons-select/justice-committee/news-parliament-2017/small-claims-limit-personal-injury-report-published-17-19/
In short, they have significant concerns and said that "the small claims limit for personal injury should not be increased unless Ministers can explain how it will make sure that access to justice is not affected."
Their concern is the same problem Litem is trying to address - the "lack of legal representation" that will be caused by the changes.
The government didn't listen to the recommendations of the Justice Committee on the discount rate a few months ago, so it is not clear what the impact will be, but it is definitely positive.