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The semester's starting at The Oaks boarding school, and at Discovery House eight students have to deal with running their own dorm. With Chris in love with his older brother Miles's ex-girlfriend Anya who has to help the new girl Bethan adjust while Staggsy and Drew pull every prank they can think of, what can go wrong?
Dignity goes out the window at Discovery House as everyone sucks up to Chris to convince him to become houseparent. Meanwhile, Tally's mom bails on her and sends her a present instead... the kind no one's allowed to know about.
A new pupil arrives in style on the back of a motorbike... but Jax is determined not to stay. She makes plans to get herself expelled, and starts by insulting the music teacher, Niamh. She marches into the staffroom demanding a coffee, takes possessions from her housemates, threatens to walk around the school stark naked and disrupts assembly. Eventually, she ends up before the school Disciplinary Board for endangering the life of a classmate. But does she get what she wants? Meanwhile, Chris is angry to discover that Miles is still two-timing Anya with his driving instructor Susie. When Miles fails his driving test, Chris hopes that the problem will go away, but, unaware, Anya buys more lessons for her love-rat boyfriend.
Anya decides to take driving lessons... from Susie. In the car, she discovers a tape that she had made for Miles, and realises what's been going on. She is heartbroken. Jax begins her punishment, helping in the creche, and is surprised to find Beans there too. When Beans is wrongfully accused of hitting one of his young charges, she is struck by the unfairness of the situation - she is the one trying to get into trouble, but he stands to be punished for something he didn't do. She sets out to clear his name. Chris enters a Young Journalist competition in the local paper, and interviews Tally about her famous mother. But Tally says more than she should, and when the article is published, she is horrified.
Jealous of Beans and music teacher Niamh's friendship, Jax writes an anonymous letter to the school newspaper accusing them of having an affair. As editor, Chris decides to publish, but Beans is very angry, and determines to find the accuser. Jax begins to feel guilty... Chris confesses to his father that he doesn't want to join the family firm of architects, but that he wants to become a journalist. Mr Silverstone is furious, and cuts off Chris's allowance. As neither of them has any family plans for the weekend, Tally takes Bethan riding. But Bethan has never been on a horse before.
Bethan is caught crying. Drew and Staggsy try to find the cause of Bethan's unhappiness, and finds a whole stash of letters that she's written to her mum, but never posted. They also discover that her birthday is coming up, and the House decides to throw a surprise party. Beans is still mad at Jax, but Jax is determined to make amends. Eventually, Beans accepts Jax's apology, and they become firm friends. Meanwhile, Chris tries to tell Anya how he feels about her, but can't find the words. Bethan is delighted that her friends are celebrating her birthday - until she learns how they found out.
It's exam time. Tally tries to skive out of them by feigning illness, but doesn't fool deputy head Jan Roberts, who threatens to put her down a year unless Tally can show her a reason not to. So she ropes in her friends to help her make a film about her life at The Oaks. Staggsy and Drew are caught cheating. Grilling them about the episode, Jan Roberts realises that Drew can't read, and that Staggsy has been helping him. Anya isn't happy with her design and technology project, and in frustration smashes it. Chris thinks Miles destroyed the model, and reports him. Now they all have to face an investigation by the School Council - can Anya let Miles take the blame, or will she confess that it was her?
Chris has written a play for the school Drama Society. It stars Miles. To help Chris, Anya volunteers to be lighting director, but soon argues with Miles. She tells Chris she'll only continue if Miles apologises, so he arranges for them to meet. Miles soon talks Anya round, and they are back together. But Miles also tells her that Chris has a crush on her. Despite being grounded, Staggsy is determined to escape school and go to his sister's birthday party. Tally is organizing a beauty contest, which appals Jax and Beans, who decide to sabotage it...
Drew discovers that a homesick Staggsy has decided to go back to being a day boy, and feels angry and upset. Shy Bethan is selected to make a speech on behalf of Darwin Family at the inter family public speaking competition. Bethan is mortified. To help her, Beans suggests that she imagine the audience naked, and Jax challenges Beans to turn up naked. Will he? Bethan gets so upset that she runs away. Tally decides to do the speech in Bethan's place, but at the last minute Bethan turns up, and makes an emotional speech about her hero - her mother - who is dead.
In protest at the rule that says no pupil of the opposite sex should be in another's room after 9pm, and to prove that there is such a thing as a platonic relationship between boys and girls, Jax decides to move in with Beans. But what does Beans think of the arrangement? Now that her schoolmates know about Bethan's mum's death, they are treating her differently. Tally is determined to help her get over her grief by helping her to get a life... and a boyfriend. Meanwhile, Chris decides it's time to stop moping over Anya and get himself a girlfriend. Drew welcomes Damian as his new roommate - now it's Staggsy's turn to feel left out.
Jax calls Beans' bluff and pretends that she's in love with him. Embarrassed, he eventually tells her that he had only pretended to have a crush on her to get her out of his room. Can they still be friends? Chris drops design in favour of media studies, but Miles tells their father, who is furious. They have a terrible row, and Chris swears that he will no longer take any money from his father, not even for his school fees. However, Chris's relationship with Natasha is blossoming, much to Miles and Anya's annoyance. They ‘bump into' the other couple on a date, and there's another row. Damian drives a wedge even further between Drew and Staggsy.
Staggsy confronts Drew about his attitude, but Drew refuses to talk to him, believing he told the whole school about his dyslexia. Damian eggs them on to fight it out, and they agree to meet in the gym... It's two weeks until Bethan's athletics county trials, but she is unhappy with her performance. Her trainers are past it, but she won't replace them as they're her ‘lucky' trainers. Tally determines to help Bethan. Anya, whose parents are having financial difficulties, applies for the sixth form prize, but she makes Miles promise not to tell anyone. However, Chris too is secretly sitting for the prize, and only one of them can win. And Anya is growing increasingly jealous of Chris's relationship with Natasha.
As the sixth form prize exam begins, Chris and Anya realise that they are competing. It's only after Chris wins the prize that he discovers what it means to Anya - that she will have to leave the Oaks. So he swallows his pride, and his dreams of a career in journalism, and makes it up with his dad, leaving the prize to Anya. It's Miles's driving test - he's shocked to see that his ex-girlfriend Susie is the examiner. And as the country trials approach, Bethan is increasingly stressed. It doesn't help when they lose their driver to take them to the trials. Can Miles come to the rescue?
