There's a new Head Teacher at Waterloo Road. Karen Fisher comes equipped with two children of her own, a renegade daughter and a troubled son, and is soon joined by her husband as an assistant teacher. It's a family affair, except that this family is an explosion waiting to happen from the pent-up frustration over a missing child. New challenges to hit the school system include more than one pupil who comes out as gay, bullying, bulimia, sex education and the morning after pill, a bright student who is forced to live alone in a hostel and a boy, whose father is a gangster, taking the law into his own hands. Grantly Budgen has to deal, not only with his own weaknesses but the decline of his beloved wife from Alzheimers. And an old friend is back as former student. Janeece returns to the school as school secretary, but she doesn't come back alone. A new Head, new troubles, new successes, new challenges: It must be a new term at everybody's favourite school, 'Waterloo Road'.