The aftermath of the car crash affects the entire school. Lorna announces her pregnancy to her new husband, but he isn't so sure he wants a child. Things begin to heat up between Steph and Jack.

A pupil gives birth at the school, but who is the father? Could it be one of the teachers? Andrew implements a house system with disastrous consequences.

Izzie's ex-husband causes chaos at the school when he demands access to their children, and Tom confronts Lorna about her apparent miscarriage. Meanwhile, the pupils set up a scam to gain more points in the new house system.

Lorna tries out a new image in a bid to catch Tom's attention, while Budgen suspects one of his students may be taking drugs and approaches Andrew for help.

An education inspector pays a visit to Waterloo Road, and brings bad news regarding the future of the school. Meanwhile, Tom and Izzie struggle to fight their feelings for each other.

The staff organise an open day in a bid to impress the inspectors, but events take a turn for the worse when gay pupil Rory starts a petition against homophobic bullying.

Tensions run high as the inspectors make their decision about the future of Waterloo Road, while Chlo's nerves are in pieces as she faces her day in court. Kim speaks to the committee about the incident with Lewis, but they are less than sympathetic.