Alf has received a tax rebate and is celebrating by blowing it in the pub, where he hears about another regular's racing pigeons. Alf believes he's onto a winner by taking up the sport himself and takes a train to set the birds free, though inevitably, things don't go as planned.

It's Christmas Eve and Alf still has no present for Else. The Black man selling cheap watches seems like a lifesaver but maybe Alf should've held back on the slurs before buying. On Christmas Day, Alf propounds his view that Jesus was English, to dispute. However, a meeting in the pub with the cast of 'Jesus Christ Superstar' seems to support Alf's theory.