Acting headteacher Jack Rimmer hires Oxbridge graduate Andrew Treneman, hoping he can improve their failing status and bring them back from the bottom of the league tables. Colleagues Tom and Lorna tie the knot - but the groom ends up kissing someone who isn\'t his new wife.

Adam ishuged in a car crash on Waterloo Road, which also leaves Holly in a coma. Donte and Chlo are plagued by guilt for their involvement, and suffer malicious taunts from all corners of the playground. Izzie feels awkward after kissing Tom at his wedding reception, while he remains unsure about exactly what he wants. Andrew comes into conflict with Kim, but they soon begin to see eye to eye.

Pregnant student Zoe causes problems for Jack, while Andrew\'s new scheme to bring a little competition into the school backfires. Lorna considers having an abortion because of Tom\'s apparent disinterest in being a father, and Chlo visits Donte in prison, where they discuss what will happen if Holly wakes from her coma and reveals the truth about the crash.

Izzie\'s ex-husband Jimmy causes chaos at the school when he demands access to their children, and Tom confronts Lorna about her miscarriage. Meanwhile, the pupils set up a homework scam to gain more points in Andrew\'s new house system, but it isn\'t long before their devious plot is uncovered. Jack wonders about the sudden improvement in the grades gained by Steph\'s French class.

Lorna tries out a sexy new image in a bid to catch Tom\'s attention, while Head of English Grantly Budgen suspects one of his students may be taking drugs and approaches Andrew for help. Chlo takes drastic action to convince everyone she was driving on the night of the crash, and Steph stages a break-in to get rid of the suspicious coursework and avoid losing her job.

An education inspector pays a visit and brings bad news regarding the school\'s future. Jack decides the time has come to let Steph go, but his task doesn\'t quite go to plan when she threatens dire reprisals unless he rethinks his actions. Meanwhile, Tom and Izzie struggle to fight their feelings for each other and things come to a head when they find themselves alone.

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. Holly wakes from her coma, and Chlo rushes to her bedside in the hope of finding out what she remembers from the crash. Andrew asks Jack why Steph hasn\'t been sacked, while Lorna catches Tom and Izzie together.

Tensions run high as the inspectors make their decision about the future of the school, while Chlo\'s nerves are in pieces as she faces her day in court. Kim speaks to the committee about the terrible incident with Lewis, but they are less than sympathetic to her cause and she contemplates quitting her career - much to Andrew\'s dismay. Lorna remains heartbroken over Tom and Izzie.