Following a storm which damages the roof Matron hopes to impress the visiting governors by claiming that she will start fund raising for a new one. One of the governors, Dr Bridges, brings his naughty little daughter Annabelle, who almost gets Elizabeth in trouble but the doctor is impressed by the orphan's honesty and offers her work. A miserable Hetty is cheered by Vince and comes close to befriending him - until she learns he has been blackmailing Nurse Winterson. Miss Smith and Cook conspire to let Hetty have a secret meeting with Ida, but Matron finds out, forcing Miss Smith to resign.
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