After Liam denounces religion in school, Debbie has to act quick when the teachers request a home visit. She tells them that Liam has cancer and the news spreads around Chatsworth. Realising how serious Debbie's actions are, the Gallagher kids, along with Karen, Kev and Veronica, must go along with the charade, as preparations for a fund raising day organised by Jez get underway. However, the situation also forces Frank to confront his failings as a father, so he endures on a drink and drugs binge, with devastating results. Back at the Gallaghers', Monica and Norma return, and events finally come to a head at Liamday, the fund raising event. Meanwhile, Kev attends evening classes, but when his teacher tries to seduce him, Kev finds himself unable to resist her. Unable to fight temptation, Kev turns to Karen for help. However, she quickly uses his situation to have a little fun herself. Elsewhere, Marty is determined to raise a depressed Sue's spirits.

A heavily pregnant Mandy is knocked over during a robbery at Kash's shop and gives birth to Lip's daughter, Katie, but the Maguires forbid contact. Eager to ally himself with Mandy's parents, Paddy (Sean Gilder) and Mimi Maguire (Tina Malone), Lip enlists Ian's help to find the robber responsible for the theft of a Maguire family heirloom. Will an encounter with an elderly person in a glory hole, a tortured deaf boy and a stand-off on a multi-storey car park clear the path for Lip and his new daughter? Meanwhile, Kev is given a racing tip not to be shared with anybody. Unlucky for him, Veronica tells Carol and she spreads the word around Chatsworth. Elsewhere, Sheila goes on strike as a skivvy when Frank forgets her birthday, sending him on a quest to find money to pay for a birthday present, while Sue attempts to fool Debbie into thinking she is not living at the Gallaghers so that she doesn't have to pay her way.