Harriet has moved to Holland to take up a teaching job. With the tenement blown up, Harvey and Lou end up in a doss-house but Harvey gets himself and Nan a flat in a house owned by Jewish refugees the Gottliebs.
With Lou in a sanatorium, Maggie starts to train in nursing.
Denied time off work to attend the Labour party Conference in Brighton with fellow councillor, solicitor Dick Elliott, Harvey quits his job but gets offered work by Dick as well as hearing a German address the delegates.
After a visit from Monty's pregnant girlfriend, Rita dumps him and goes out with the charming, urbane Leo Brandon, who has employed Maggie in his hat shop, only to be told that he is gay!
Having thrown Tom over for Lou, Maggie is devastated when a letter arrives from Scotland to say that Lou is now dating his convalescent nurse.
Christmas is coming, and Harvey clears the air with Ryder whilst Rita takes over the running of the salon and Maggie gets back with Tom, to the dismay of her annoying friend Veronica.
It's the coldest winter for fifty years and, whilst Harvey gets cosy with Frieda, Rita is feeling the bite. Firstly, after Stanley's headmaster has visited and had to stay the night on the sofa after being snowed in, she has to contend with his irate wife.Then the water mains freeze up, closing her salon when she is in debt to the landlord.
The Moons are unable to pay for Stanley to go on a school outing, but Harvey's pride causes him to turn down the headmaster's offer to finance him from school funds.
Harvey feels that Stanley is getting out of control and wants him to move in with himself and Frieda for when they are married. However, Frieda's paintings attract the attention of Jewish gallery owner Adrian Horowitz, and she seems set on her own career.