When Fiona Gallagher's (Anne-Marie Duff) bag is stolen on a night out in Manchester, a handsome stranger called Steve McBride (James McAvoy) comes to her rescue. He accompanies her to her home in Chatsworth, a deprived inner city council estate, to meet her large family, and the pair begin to grow close, until she receives a visit from the police concerning her alcoholic father, Frank (David Threlfall). Meanwhile, Lip Gallagher (Jody Latham) makes a shocking discovery about his brother Ian (Gerard Kearns) that turns the brothers close relationship upside down, and he also uncovers a shocking secret about the local shopkeeper, Kash Karib (Chris Bisson). Elsewhere, Karen Jackson's (Rebecca Atkinson) father, Eddie (Steve Pemberton), leaves home after catching her in a compromising position.

Frank makes an accidental trip to France, and following a row with Fiona decides to move in with Sheila.

The Gallaghers have a big problem on their hands when a local child goes missing from a party. Debbie steals/kidnaps a baby from the estate. However, the local residents immediatly think that the kid has been kidnapped by a pervert not least because Frank thinks he saw one outside the house of the missing girl. The race is on to find the girl while the Gallaghers, Veronica & Kev come up with a madcap scheme to get the baby back. It looks set for disaster but somehow they manage to get it off. The baby is returned and Debbie is flooded with money and praise by the Police little knowing she actually kidnapped the kid in the first place. Meanwhile after all the excitement Karen Jackson seduces Frank and they pair embark on a dangerous and likely disasterious affair.

Karen and Frank's affair continues behind the backs of Shelia and Lip. Shelia is concentrating on beating her phobea of open spaces, through a nurse that comes and visits her. Shelia goes shopping through a virtual reality machine but panics when she gets too near the doors. Ian's affair with Kash is ruined after security cameras are installed in the shop to stop shop lifting. Yvonne notices strange behaviour and comes to the correct conclusion. She tells Kash that she wants another baby and decides that Ian can stay on at the shop but his relationship with Kash is over. Lip discovers Karrens and frank's affair and goes crazy. He attacks his father.

Frank brings down the power of the social services on his family in a failed attempt to extract money from Monica.

The balifs and Mr Wilson are still after Frank. And Frank seems to be more interested in spending time with his ex-wife, Monica, than dealing with his spiraling debts. However, much to Frank's annoyance Norma, Monica's lesbian partner, gives Frank a good idea, to fake his own death! Meanwhile Maggie realises that Frank isn't as interested in her as she hoped. When Anthony comes around to talk about Fiona she accidentally gets Chilli in her eyes and staggers out into the Garden! The first time she has been out in five years! Tony has finally found the perfect way to get rid of Steve and get with Fiona for he has stumbled across Steve's car stealing scam. The balifs aren't so convinced that Frank is dead until one of them attacks Frank in his coffin, in front of the family! When Frank doesn't stir the balif finally realises that Frank is really dead, and how sick his violent outburst/attack seemed. At Frank's wake Frank bursts out of the coffin and a party starts. Maggie turns up to ever