A new set of students start at the school and Lauren finds it difficult to make the required grade. She finds life even harder when her classmates find out that she didn't even have to audition to get a place at the school. Danny attempts to help Lauren but she begins to wonder if all the hassle is really worth it.

Danny finds himself clashing with with his music teacher when she tells him that he has to to stop acting like the class crown and to perform better in his academic classes.

Jez's friends organise a surprise for his birthday. Not everything goes to plan though when Jez's friends find out that he has been keeping things from them. Jez finds himself having to make some really big decisions.

After bumping into Matt Willis on a night out and being photographed with him, Lola makes up lies and sells stories to the newspapers. Lola friends herself loosing her friends as she attempts to remain the centre of attraction.

BB's older brother, Julius, arrives at BH and BB is desperate to impress him. He is suddenly part of a big gang, holding guns. There is an offer of a shop raid. Will BB go for it, for his brother?

Claudine is in love with Danny and hatches a plot to break him and Lauren up. Meanwhile, Lola thinks she has seen a ghost and Jez and Ronnie play a prank with Ronnie dressed up as the ghost. Claudine and the rest of the gang are also involved and Lauren and Danny confront Claudine about her plans. Claudine is upset and storms off, after insulting both BB and Lola. Danny follows, aware that she is upset. Claudine confides in him everything in her life, before admitting her love. Danny kisses her, unaware that Lauren can see them both.

Lola pretends to be in a relationship with someone who risks losing his job in the process.

Ronnie wants to be in the end-of-year musical, but she is a terrible singer. Can Jez tell her the truth, or is it too hard as it looks like she's running away already? Meanwhile, Lauren may have multiple sclerosis, Claudine has finally found happiness in her life with Danny and Danny reveals that he loves both Lauren and Claudine.