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.

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.