This is the third annual report on the effects of the introduction of the new higher education fees arrangements for UK and EU-domiciled full-time undergraduates attending higher education institutions in England. The previous two reports have established baseline information about trends in higher education, both in student enrolments and in the fee and income implications for higher education institutions in England. In this report, for the first time, it is possible to see the impact on student enrolments in the first year (2006/07) in which the new variable fees for full-time undergraduates applied. This report, like its predecessors, brings together a range of information from publicly accessible sources and the institutions themselves about the demand for higher education, the nature of the student body, the fees and bursary arrangements and the financial situation of institutions. Although it is primarily concerned with full-time undergraduate students, it also seeks to provide information for measuring any impact of the changes to full-time undergraduate fees on the fees and demand for part-time higher education. While the major focus of this work relates to England, some statistics have also been presented for the other countries of the United Kingdom, in order to provide a basis for comparative analysis. An annex includes: First-year full-time UK-domiciled undergraduate students by principal subject of study, 2003/04-2006/07. (Contains 21 figures, 20 tables, and 12 notes.) [For the second report, see ED536615.]