Carmel searches for a bedsit. Derek tells Mrs Jeffers that he wants to resign as he can't stand being Harry's whipping boy. He is stunned when she tells him that she knows Harry is a bully and she wants rid of him. She asks Derek to stay and help her get rid of Harry by keeping a log of all he does. Derek agrees to act as her spy. Jack warns Vera not to alert Terry to Lisa's social life. Terry is amazed that Vera has arranged a special visit just to tell him that he's forgotten Lisa's birthday. She slips up and tells him that Lisa has been going out with Des. She urges him to show Lisa how much he loves her. Carmel finds all the bedsits are rotten. Alma offers let Carmel rent her old flat, but Carmel says she's looking for somewhere bigger. Angie pays Mike the £20 for using his machinery.