Things are worse than ever for headmaster Vaughan and his partner Allie this week. Vaughan’s son, Justin, continues to rail against the situation that’s led to them all living together. He’s boiling with anger and takes it out on Allie’s son, Floyd, so Allie asks teacher Simon to mediate between the two lads.

The meeting makes things worse, however. After storming out, Justin takes his rage out on a teacher, leading to the shock resignation of George Windsor!

Pupils Shaznay and Lisa soon see a quick money-making opportunity, but things go sour when the OAP they’re trying to fleece turns the tables on them!

And it turns out grieving student Darren has been turning to Rhiannon’s arms – and bed! – for comfort. Maggie, who runs the school’s boarding house, has to take decisive action to prevent the relationship getting out of hand. She imposes a strict no-bed-hopping rule at the school house!

George hands in his resignation after Vaughan sides with his son Justin over him. Before he leaves, he gives his money grabbing ex Carol Barry a cheque for £1000 from their holiday compensation, while unknown to her he pockets the other £14, 506!

Elsewhere, former-pupil Dynasty Barry waves goodbye to Waterloo Road to begin a career in the police force.