After her run-in with Alison, Sammy hits back.  Coral attempts some Christmas matchmaking.  Growler forces Katie to tell Mr Jenkins that she is being bullied, and Bagga is suspended.

It is Christmas Day on the Close, and Terry and Sue end up with more dinner guests than they are expecting.  Tracy invites Barry to a party, and Jimmy and Sinbad's present for Billy results in a cold, dark Christmas for Katie.