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.

The last member of the family for whom she once worked has died, leaving her an old car. With Frieda to supervise Nan drives Maggie, Stanley and Harvey back to the house where she worked, where Harvey and Frieda kiss and Harvey learns a secret from Nan's past. However the car breaks down so Nan sells it. Rita agrees to stay friends with Leo and buys into a hair-dressing salon whilst Stanley wins a school essay competition with a story based on Nan's little secret.

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.

The Gottliebs' teen-aged compatriot Yossela moves into the house but he is deeply disturbed by his wartime experiences and behaves erratically, slashing a portrait Frieda is painting of Harvey as he is jealous of their growing relationship. Ultimately, with Tom's help, he is put onto a ship bound for Palestine and, with peace restored, Nan kisses Erich under the mistletoe.

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.

Leo writes another cheque, but his possessive mother cancels it. Fortunately, Veronica is so keen to work with Rita that she is prepared to lend her her life savings.

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.

Orthodox Erich, disapproves of Harvey dating Frieda and refuses to support his anti-Fascist meeting, though Harvey's tolerance almost stops short of Leo when he finds out from Maggie that he is gay. However the two men are reconciled at the dog track where Leo's greyhound is racing and where Harvey is robbed of his winnings by two Black Shirts who attended his meeting. Monty Fish helps him to turn the tables on his attackers as well as helping him to get on the right side of Erich.

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.

Rita considers a divorce before going on holiday with Leo to the South of France following his mother's death.

Nan meets Geoff, an old flame now a widower, who proposes marriage to her.

As news spreads of Harvey's night with Rita, Nan is disapproving, Frieda feels betrayed and Harvey himself feels used since it nullifies all charges of adultery against his wife.

Maggie gets asked out by local stall-holder Alfie, who is also a talented boxer and there is a family outing to watch him win his fight.

Unexpected drama follows as Veronica goes into early labour and Ian from work declares that he is the father of her baby.

Erich dies suddenly and Frieda is amazed to get a visit from Joan Gottlieb, a Gentile who married Erich in Manchester before Frieda came to England, and has evidence that she lent him the money for his first bakery. As she is still his legal wife she is claiming her rights, including the house, but Harvey, using his professional contacts, learns from a Manchester lawyer that Erich separated from her and so she is entitled to nothing.

Rita's supplier, Alistair, offers her a partnership making face cream but she refuses when she finds that she is expected to do all the work. Leo hopes to get a shop in the West End with Rita but it falls through.

As Maggie proudly shows off the engagement ring Alfie bought her, Harvey travels to Margate with a professional co-respondent to facilitate his divorce. Nan, on the other hand, wonders if she has made a mistake in marrying Geoff and returns to Harvey's though, after a chat with Frieda, she and Geoff are reconciled.

Rita gazumps Veronica when they both make an offer for the same house but, as Rita and Stanley move out of the prefab, Veronica and Ian move in.