Michael Byrne wakes up to see that his salary is splashed across the newspapers. Everyone in the staff room is quite supportive, but he’s still frustrated at yet another setback.
Meanwhile, Jez tries to organise a romantic night for him and Sian, but she declines and says she has too much work to do. However, when Michael tells Sian that she should come round to his house in the evening, she accepts. A shocked Linda has overheard it all.
Then Linda introduces Tom to brand new teaching assistant, Greg, who she has decided to bring in to help in Tom’s classroom. But Tom isn’t impressed. Undercover, Greg sneaks into Michael’s office and plants a secret camera. It turns out that Greg is an undercover reporter for a local newspaper, and is planning an undercover expose on Michael, his salary and the failing Waterloo Road.
Back at his house, Sian meets him and says that she can’t stay with Jez, and wants to be with him. Linda watches Sian arrive, and in her anger, scrapes his car with her keys.