In 2012 the Conservative-Liberal Democrat Government introduced a number of reforms to the higher education system in England. The main change was to abolish direct state subsidies for the teaching of most subjects, and replace them with a state-subsidised tuition fee of up to $9,000 (US $13,700). A number of other changes were also made, all with the aim of increasing institutional competition and consumer choice. The Government believes the reforms are necessary to assure financial sustainability, raise quality and enhance social mobility. This paper assesses the early impact of the reforms. It concludes that, on the evidence so far, none of the Governments declared objectives is likely to be met.