I know of some guys using rubber o-rings or little pony tail rubber bands from the dollar store, to hold the case back in the chamber to get around headspace problems. I'm not sure if this would work for you or not. If 3 out of 10 are coming apart upon firing, I think your rifle may be beyond the o-ring fix though.
The o-ring should work. The point is to hold the casehead against the boltface so that the case will fireform, without an incipient or full separation. Once cases are fireformed, they are reloaded as if the cases were rimless, headspacing on the shoulder.
SMLE boltheads do not come in graduated sizes, unlike the No. 4, but if you can find some heads, you could try swapping ones in to se if you could get proper headspace.
Also, measure the rim thickness on the cases. If it is on the thin side, the ammunition could be creating the excess headspace.
Setting the barrel back and recutting the chamber would probably cost as much as the rifle did. The handloading option is the least expensive.