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.

Kev accidentally proposes to Veronica, and although he soon admits he's still legally married to Roxy, they decide to go ahead with a fake ceremony anyway in order to claim a small inheritance from Veronica's father.

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

Frank is forced to take a job as a window cleaner when his father arrives. But is the window cleaning round really the best form of employment for Frank? Meanwhile Karen eyes up Kev down the pub.

Frank takes a call while partying at Kev and Veronica's, but only much later does he pass on the message that social services are coming to discuss fostering. After a mad clean up, the social worker arrives with a child in tow. Next morning, the boy collapses at breakfast. After an anxious rush to hospital, it is found that he is suffering from nothing more life-threatening than the digestion of last night's leftover hash cake.

A gardening competition is launched, by the council, to find the best garden and reward the winners with a years free rent! Naturally the shabby gardens of the Chattersworth estate suddenly turn into gardens fit for the queen. Carol doesn't wish to loose the winning prize and turns the Gallagher's garden from old wreck to sparkling garden. Veronica wants to do up their garden but Kev isn't too keen, that is until he meets with Tommy who works for the council. Together they steal a Diana Memorial Garden (!) and move it into their back yard. Carol see's it as a declaration of war between mother and daughter and when the garden is trashed things turn even nastier between the warring family. It's later revealed that a group of yobs were responsible for trashing the garden, and others, but this does little to end the argument. Meanwhile Shelia leaves to visit her sick mother in a hospice and leaves Frank with baby Nigel and Delia.

Plans are afoot for Steve and Fiona's upcoming wedding. They pay a visit to the local vicar who eventually agrees to let them marry in the church but only after Steve agrees to pay a lot of money. Then disaster strikes when his car is stolen outside the church. Steve begins to panic and calls Tony. However, unknown to Steve Tony has actually stolen it for a joke but decides to look inside the car and finds a lot of money and drugs. Veronica becomes convinces her mother is going crazy when she continues to talk to her dog. Marty packs her off on a mystery cruise and then takes the dog to have an operation to loose its voice! Steve persaudes Tony to hand over the car. Steve drops the car off with some drug dealers but Tony and Stan turn up. Things turn nasty when a gun is pulled and then fired. One of the drug dealers is killed and the other one escapes but is quickly captured. A warrant is issued for Steve's arrest and he has to flee the estate.

Sheila asks Lip to water the plants for a neighbour who's away on holiday, but the house is burgled and Lip is arrested by a bent copper, stitched up and charged. Frank goes to the police station and makes matters a lot worse.

Lip is sleeping with Mandy while she pretends to be Ian's girlfriend to hide the fact that he's gay. However, after Mandy falls pregnant with Lip's baby everyone thinks Ian's the dad and the Maguires welcome him to the family - with the threat of castration if he doesn't marry her. Fiona gets mugged on her way home from a drunken night out.

Ladies Night at the Jockey proves to be more trouble than its worth. For one thing its full of blokes which only serves to anger Jez. Fiona eyes up footballer Ryan but when she wakes up the next morning it isn't Ryan who is lying next to her. Instead its the less-than-desirable Joey Dawson. Fiona decides to take contraception but before she can actually take them Liam swallows them and then Marty traps Joey's arm in a door. At the hospital they discover that Joey's arm is broken but Liam is fine and there will be no ill effects. A follow up visit from social services isn't as simple for the Gallagher family. The inspector is Katrina a woman who went to school with Fiona and who's life was apparently hell because of Fiona dubbing her "Sperm Whale". But the family pass the visit but Katrina reveals she's engaded-to Joey Dawson. At the Jockey Joey confesses he loves Fiona while Ryan lets slip to Katrina that Fiona and Joey were all over each other the night before.

After walking out of her job at the nursery, Fiona confesses to Veronica that she is pregnant by Craig and hasn't told him. Frank falls foul of two shifty accident claims salesmen after being hit in the mouth by Kash's shop door. Kash and Yvonne cannot afford to pay out and are forced to close the shop.

Debbie's on a mission to help Marty who has an impending court appearance for a breach of the peace. Fiona is suffering from morning sickness, so Craig is planning a surprise trip to Wales to relax. Craig's wife, Sue, is jealous of his new relationship and seeks a showdown at the Gallaghers' house.

The local elections are underway and Kash is running to be Chatsworth's councillor against dirty-dealing Bernie Creme. However, it turns out that Bernie is just a racist who exposes himself to the entire pub and loses all his supporters. Lillian's husband is involved in a tragic accident which, at first, appears to be caused by Tony and Stan's Police van. But it later turns out that moments before he was hit by the van he was shot in the head. And it seems he was a junkie, according to the Police. Lillian is dashed off down the Police station to be interviewed about her late husband while Carol realises who shot him-Carl! Tony and Stan quickly figure out it was Carl as well due to CCTV footage. The family (bar Fiona who doesn't know) rallies behind Carl and just about manage to get him off the hook. Frank meanwhile decides to take the deadman's indentiy to get his benifits and then tries to kill his pet dog through various methods.