The Sugdens are shocked to learn that Billy Hopwood might get parole and the news overshadows Diane’s return. The family is confused when she organises an impromptu party and then laughs uncontrollably at the news of Val’s problems with the police. Elsewhere, Edna hands in her resignation and sets about convincing Jimmy to tell the truth. They are interrupted by a furious Tom who orders her away from his son. But after Edna persists with her moral quest, Tom takes matters into his own hands. Meanwhile, Grayson mistakes Perdy’s illness as a sign she might be pregnant. Unable to hide her guilt she blurts out that if she was pregnant the child might belong to Matthew.