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It's Christmas Day. The family have just finished a big Christmas dinner. Barbara learns her turkey wasn't up to scratch, and Dave buys Denise a mobile phone for when the baby is born. Antony goes to Emma's shortly afterwards, and Dave takes Nana home. Soon after Dave and Nana have left, Denise goes into labour upstairs in the bathroom, and Jim is left to comfort her.
The Royles and all their friends gather at the house to celebrate Antony's 18th birthday. They are all nervous when they finally get to meet his girlfriend Emma.
Barbara cries to Denise that she is sick of Jim's laziness and lack of compassion while Jim complains to Dave that it's the menopause that's making Barbara act this way. After a while, Barbara storms out the house, but Jim does nothing and watches Who Wants to Be a Millionaire? with Dave and Denise. Barbara returns and Jim consoles her.
Nana has had her cataract operation and is staying with the Royles. Jim is unwilling to hide his annoyance. Antony's band has split up.
Jim is annoyed when he learns that Barbara has invited Nana to come and stay after her cataract operation. Antony announces that he's become the manager of a band called 'Exit', which the family find hysterical (especially Jim).
Nana and Twiggy come round for Sunday lunch. Barbara loses her temper during lunch. Denise suspects her mother is going through the menopause, or "the change" as Nana puts it.
Barbara and Jim are overwhelmed when Denise announces that she is pregnant. Meanwhile, Antony makes Dave and Denise a bacon sandwich because of their less exciting tea, Dairylea on toast.