The first day of the new term sees brothers Zayne and Dwayne Jackson being accompanied to school by their foster parents, Sergeant Mike Rutherford and deputy head Joe Casey in Mike’s police car.

The repercussions of the previous term’s stabbing continue to reverberate; airport-style metal detectors have been installed at the school entrance much to the consternation of the pupils who believe excessive force was used in the arrest of Danny Lewis and that the police are in fact the enemy. In an attempt to get the pupils onside, Mike organises a charity football match with the pupils in mixed teams with the officers. Myles Massey, newly transferred to Waterloo Road from a football academy, decides to take part, but despite some shows of individual brilliance he eventually succumbs to a tackle by Dwayne Jackson, who he has been antagonising. What should have been a good-natured exercise in team building soon descends into chaos with a punch thrown and the police failing to find any common ground with the students.

Dwayne decides to run away to Birmingham so that younger brother Zayne might have a chance at being adopted by Mike and Joe. Lacking funds for the ticket he stows away in the luggage compartment of a coach where heat exhaustion soon takes a toll and he passes out. Tonya having been in contact with him, reports this, which leads to his eventual rescue and reconciliation with Joe and Mike.

Danny Lewis is out on bail. With the knife still not recovered, his prospects in court are uncertain. Samia pays him a visit at lunchtime and they end up consummating their relationship, only for Val to walk in on them much to the pair’s amusement. Later that same afternoon Danny receives a visit from Vinny with an offer that could see charges dropped, but after a meeting with Kim, he decides to go to the police and make a full confession.

Kelly Jo Rafferty is finally confirmed as suffering from ADHD, but at the assessment meeting her mother Debs walks in late and smelling of alcohol. Nicky Walters, in attendance to support Kelly Jo, lets slip that her niece has been given valium by her mother without a prescription resulting in a fight between the sisters later in the canteen which is witnessed by the school governors.

At the governors’ meeting, Samia’s father and Myles Massey’s mother express concerns regarding what they have seen and threaten to withdraw their support for Kim’s leadership unless she agrees to monthly progress meetings and no-notice walkabouts. Kim, finding herself backed into a corner, acquiesces both to the parent-governors and to meeting Andrew Treneman for a drink after work.

Kim and Lindon’s professional relationship also continues to be fraught with tension, and matters are not helped when Verity, Lindon’s daughter overhears her father and the head teacher discussing details of their brief affair last term.

Joe is given a letter from Zayne and Dwayne’s birth mother Lisa. Fearing the worst and the impact it may have on his and Mike’s attempt to adopt the boys, he fails to pass it onto the children.

In the run up to the evening’s ‘Word Beaters’ poetry slam, Val and Kim clash over the precedence and funding being given to vocational subjects over the arts. Kim is reminded by Val of her past as a champion of the arts when she was at the coalface as a teacher, and is encouraged by Andrew Treneman to go back to teaching some classes herself in order to better connect with the students.

Having recognised the handbag she had spotted in Donte’s hallway as Amy’s, Nicky approaches Donte and convinces him to make things right with Amy. Donte repairs the drama studio’s PA system and then takes Amy aside to have a chat, but both of them fail to realise that the mics are still live and that their every word is being broadcast to the children in the studio, including his daughter Izzy.

Kai and Preston decide to make their blossoming relationship public, but when Kai arranges a job for Preston his attempt to help is not appreciated and Preston resorts to binge eating once again by stealing cereal bars from the school. Feeling the financial strain, Nicky too steals food from the canteen, but is spotted by Kai.

Shola Aku arrives late to school and during lessons she reveal to her classmates Izzy and Tonya, that she can no longer go on the forthcoming camping trip. Her out-of-character behaviour doesn’t go unnoticed by both her teachers and friends. During a meeting with social worker Jamilah Omar and Kim they notice a bruise on Shola’s forearm. With the prospect of social services becoming involved Shola makes good her escape from the school. When she arrives home she finds her mother who has fibromyalgia collapsed on the floor.

Dean Weaver and Kelly Jo, out of the BU and back in the mainstream school on a trial basis find themselves in art class that Kim is taking. During the lesson Myles Massey provokes Kelly Jo in an attempt to get her sent back to the BU. When Dean prepares to defend his girlfriend he is stopped by Kim. Later Dean attempts to cook lunch for Kelly Jo on a makeshift barbecue which predictably results in a fire. Kelly Jo overwhelmed by voices in her head, takes refuge in the multi-faith prayer room, where Nurullah is praying.

A surprise OFSTED monitoring visit has Kim and the staff on edge as a negative report would see Waterloo Road put into special measures. It emerges that history teacher Neil and Mr Cribbins the inspector know each other and no inspection of the lesson takes place. When Mr Cribbins indicates to Neil he will be giving Amy a “needs vast improvement” assessment whatever the quality of her teaching, Neil reminds him that he shouldn’t be inspecting lessons on the basis of his personal tastes and that the truth of their undeclared acquaintanceship should it come to light, would not look good.

After a sleepover at his mother’s, Dwayne’s relationship with Joe is placed under further strain, and in a pique of anger indicates that he no longer wishes to be adopted. The devastating revelation has a massive emotional impact on Joe, but he comes to realise he must support the children in their wishes despite his reservations. Peroxide provocateur Myles Massey in the meantime continues his campaign of trying to turn brother against brother.

Nicky Walters under pressure to repay her two thousand pound loan from Vinny, decides to sell some of her possessions in an effort to meet the repayments but falls short and is given an ultimatum by the gangster.

As the end of term approaches, the school is holding a day of sponsored sports events in aid of Chlo’s Wishing Foundation, the charity set up by Donte in memory of his late wife. Preston is determined to break the school cross-country record but Myles also has his sights on the record. His mother messages him to say he has secured a trial with Leicester and not to do anything that might risk injury to his ankle, but Myles competitive nature gets the better of him and when he spots race leader Preston collapsed on the course, he carries on without helping and it’s left to Dwayne, in third place, to do the right thing and raise the alarm, whilst Kai administers CPR.

Loan shark Vinny pays a house call to Nicky and increases the pressure. She turns to sister Debs for help but is not only rebuffed but told to leave her house. Seeing no other way out, Nicky hatches a plan to steal the school’s new computers to pay off her debt whilst everyone is out of the building and preoccupied with the fundraiser. She is rumbled by Danny who has spotted Vinny on school grounds and worked out what is going on. Seeing the desperation on Nicky’s face, Danny takes the computers to Vinny in the car park, but is in turn spotted by Samia.

Whilst in hospital Preston receives a visit from a psychiatrist to help with his eating disorder, but he rejects the need for therapy and blames Kai for revealing his secret. His mother Nicky meanwhile is racked with guilt over the theft of the computers, but is told to put it behind her by Danny who is at the school to talk about his experience with knife crime at the debut of Radio Waterloo Road. Samia confronts Danny and reveals she saw him and Vinny in the car park acting suspiciously. After initially denying any involvement in the theft of the computers, he later confesses to her and reveals Nicky’s involvement in the theft.

Myles receives news that his ankle is not sufficiently healed and should postpone his trial with Leicester. Angered by the thought that his football career may be over before its even begun and feeling victimised by the entire school, he takes over the radio station and broadcasts a polemic, denouncing his fellow pupils, teachers and everything the school stands for. Unable to control his anger he strikes down his mother Rose before setting fire to the drama studio in a psychotic episode. As the fire takes hold and explosions are heard, Myles makes it out but Danny is caught in a blast and brought out unconscious. The news of his subsequent death at the hospital leaves everyone devastated.

So this episode focuses on, among other issues, the strained and erratic relationship of new pupil Myles Massey (Osian Morgan) who in an earlier episode broke his ankle in a tackle with Dwayne Jackson (Thapelo Ray) on the sports pitch. Myles' behaviour went from bad to worse after that. He was a talented footballer and couldn't cope with not being able to play for a team anymore, he had pushed himself into taking part in a cross country race while not being fit and being first to come across Preston (Noah valentine) on the run who was lying unconscious on the ground suffering a heart attack. Myles disregarded Preston's predicament and continued running regardless so that he could win the race, leaving Preston to be found by another party. Myles' behaviour continued to spiral downward culminating with the unintentional death of Danny Lewis (Adam Abbou) through a fire he started in one of the classrooms Myles was arrested and taken to the police station where he broke down.