The new school term starts with the opening of Michael's new Pupil Referral Unit and the return of no-nonsense teacher Nikki Boston. But the positive mood changes with the arrival of the Barry family - a hell-raising criminal clan lead by matriarch Carol Barry, lone parent to Waterloo Road's newest pupils - bad boy Barry and daughters Dynasty and Kacey. Carol assures Michael that her brood will behave, but it's not long before sparks fly when Barry goads fellow pupil Jack MacAlister into a fight. Tom intervenes and discovers the reason behind their hostility - Barry is sleeping with Jack's mum Olivia. When challenged, Barry promises Tom that he'll keep his relationship with Olivia discreet for Jack's sake, but the troublemaker has no intention of honouring his word and sets about humiliating Jack in front of the school, screening a steamy video of him with Olivia. Michael gives Barry a stern warning - put an end to his bad behaviour or he'll be excluded from Waterloo Road. And if Barry won't listen to his teacher's words of warning, his mother Carol isn't so easy to ignore, arriving at school to literally slap her son into shape. Meanwhile, Scout raises Nikki's hackles with her disrespectful attitude to being in the PRU. Later, when her car goes missing, Nikki suspects Scout is responsible - an accusation the schoolgirl denies. But Nikki doesn't believe Scout and the battle lines are drawn. Elsewhere, the new term also brings uncertainty for head teacher Michael. On bail awaiting trial, accused of assisting his father's death, opinions in the staffroom are divided, casting doubt on Michael's leadership. Also, scarred in last term's fire, Imogen blames Christine for ruining her life and driving a wedge between her and Connor, little realising the truth. Finally, Chalky learns that he is going to be Kevin's foster parent.
