The New Year begins badly for Sharon who finds a crasher in her bed and then is stalked while walking through the garden. After a night of drinking, Ian and Wicksy sleep on Lofty's sofa and Michelle wakes them early the next morning with her typing and then kicks them out. Ian stumbles home and into his bed where Sharon is sleeping. She lets out a scream which wakes everyone else. Ian claims he forgot that Sharon had taken over his bed, but she still looks at him like she thinks he is a sex maniac.
Angie leaves for an early morning walk over by the pub where she stops and watches the upstairs window until Den appears at the window and closes the curtain when he sees her below. Angie and Sharon are starting to feel in the way at the Beales' flat and try to help out with the housekeeping chores but Pete, trying to be the good host, forbids it. He and Den grew up together and he hopes Den and Angie will work out something but in the meantime he wants Kathy's friends to feel welcome in his home.
Kathy decides to take Mehmet up on his offer to market her home-made jumpers. She gets Maude to help with the knitting for 75p an hour and Pete and Ian agree to take over the housework while she gets the business started. Michelle, who is anxious for more cash to help Arthur pay back the Christmas Club money he stole, agrees to do the sewing up on the sweaters.
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