Now living with Rosie Gulliver Alfie is horrified when he comes to school and finds his father Martin is the new deputy head. With school finances low Martin intends to sack one of the teachers - and Alfie can guess which one he has in mind. Miss Gulliver brings the teaching staff out on strike but it seems a rather ineffectual move so Alfie prepares to do the decent thing and resign. Fortunately Fraser's skills as an inventor save the day, bringing the cash and securing Alfie's job.
Miss Gulliver is holding her book group in the library after school. The group includes her ex-boyfriend Orlando, a doctor, of whom Alfie is very jealous so, not to be outdone, he gets the class to help make it look as if he has read the study book. 'Love in the Time of Cholera'. At the same time Mitchell, who is leaving, is throwing a party in the gym and Fraser is holding a fantasy convention in the hall. Alfie is expected to attend both, latterly in costume, leading to much confusion as Mitchell's interpretation of the book makes Alfie look stupid though at least ...
Alfie is shocked that Fraser has re-employed violent sports teacher Preet, who is just out of prison. However Alfie is desperate to beat Miss Gulliver's ex-boyfriend Richard at the school sports day so he enlists Preet's aid. Before the race against Richard Alfie finds what he believes to be steroids in his rival's bag so he downs a handful, observed by the love-sick Preet, who blackmails him into having sex with him but in the event the pills are Viagara, enabling Alfie to literally win by a head.
Whilst Martin is teaching him to drive Alfie runs over Pod, the school's caretaker and feels he must visit daily to look after him whilst the class fund raise for his surgery. A spiteful Alfie steals the ambulance which Richard drives but gets caught up in a genuine accident from which Grayson rescues him. At Pod's presentation it is discovered that he is a fraud who has faked his injuries though a happy ending is denied Alfie when Martin announces that he is dating Grayson's mother.
Fraser discovers that Alfie never got his Biology CSE and tells him he must sit it or lose his teaching job. This involves him being a pupil in Miss Gulliver's class and sparring with his fellow students so he decides the only way to pass is to cheat. Sadly for him the adjudicator is the fearsome Maurice Hewston, who knows all the ruses but fortunately Grayson has an excellent Plan C which sees him through. Alfie's father also splits up with Grayson's mother due to his dislike of her annoying dog.