Mr Ashton recaps the first year's events and we see the lucky ones that are still left. Barbara is still living at home and is being persued by the hospital heart- throb. David is on 48 hours leave and goes to London to visit Grace Gould, but her husband returns from abroad and David has to leave rather abruptly, to his disappointment. He has another shock when he learns his best friend, Frankie has been killed in a air raid and this brings home to him the fact that he has made a mess of his own life - probably too late to make amends.

John Porter takes up his old job in the Borough Treasurer's Office. He begins to remember what happened to him whilst he was missing in Belgium. Phillip's friend, Gwyn Roberts nearly spills the beans about Margaret and Michael in front of John.

November, 1943. Sheila Ashton goes to Wales to see her children - it is Janet's birthday. David Ashton unexpectedly arrives in Wales too. Sheila tells David that she wants a divorce. Mrs Thomas, who looks after the children, will never go back home.

Before Harry can stop her or warn Margaret, Celia Porter tells her son about the affair his wife had whilst he was missing in Belgium. As a result, many more home truths are told that day.

Sefton wants to sell the works, but has to get the consent of the majority of the shareholders. David, who owes money, asks Sefton to buy his shares, not knowing the situation. The family divides - Edwin, Helen and Phillip against Sefton. David tries to win Sheila round again, but they argue. Sefton refuses to change his mind about selling, and agrees to let Tony have the casting vote.

Tony wants to marry Barbara, even when he finds out she has a child. Sefton persuades Edwin to visit Tony, to get his vote on selling the works. Barbara's former lover returns to see her and the boy, but tells her he's going back to his family in France. Tony is injured when he tries to stop two people walking into the minefield. Barbara refuses to marry him.

Freda meets Mrs Mackenzie on the eve of a church garden party and agrees to help out with the festivities. Sefton returns from holiday with a friend, Mrs Down. David goes home and is locked out. He decides to start divorce proceedings. Mrs Down upsets the Briggs household. She leaves. The episode ends with Freda and Ian together after the garden party.

Ian MacKenzie's ex wife comes to visit - her second husband has left her and she asks Ian to help her find a job. Freda is very unhappy about her presence and refuses Ian's proposal of marriage. Harry Porter is in financial difficulties - Edwin lends him £100 to pay off his mortgage debt. Margaret Porter discovers she is pregnant.

Margaret tells John that she is not pregnant after all. Harry Porter is depressed, out of work and John tries to persuade Sefton to offer him a job. Sefton offers one to John, but not to his father, which John turns down. After much discussion and indecision Freda gets engaged to Ian.

Freda marries Ian MacKenzie and Tony realises something that he should have known a long time ago.

A friend of Margaret Porter, Marjorie, is trying to get John Porter involved in the Labour Party's work - he eventually succeeds in talking himself into the job of treasurer. Tony Briggs, who is still fond of Freda, waits for her outside the hospital, but she brushes him off as lightly as she can. Sheila Ashton is making preparations for moving house, and Freda invites her to stay for a few days to cheer her up. David returns home unexpectedly and finds she has been to his old girlfriends to get evidence for a divorce. He is furious,and at first refuses to co-operate, but after a terrible row when he hits Sheila he finally agrees.

David's divorce has now come through and he is waiting to get his last trip of his tour in. He is friendly with Derek Robbins and his wife Jill, and is very concerned when he finds out Jack Ridley is having an affair with Jill. Derek, David and Jack all leave on a flying operation, but on the return trip, Jack Ridley is killed and the plane damaged. David gets home and goes for a drink, wondering if Jill knows about Jack, also that Derek is feared missing. On his way to Jill's house he has a crash on his motorbike.

David has a motorbike accident that will stop him flying again and he and Sheila decide to try to make a go of their marriage again. Derek Robbins is grounded.

Sefton is trying to persuade his family to sell the works in order to put money into the Howells' dubious projects - he succeeds to Edwin's dismay. Howells give David a job. Doris tells Freda she is pregnant, and Ian's attitude towards this almost precipitates a quarell. The episode ends with VE celebrations.

The period - election time 1945 - John Porter is persuaded to help the Labour Party but gets involved with Margaret's friend, Marjorie. David and Sheila move into a new home, but Sheila is still not sure of the future and doesn't want the children back until David can prove that he has changed.

David and Sheila receive news that Mrs Thomas has died and they go down to Wales to collect the children and bring them back to the new house. Howells give David the sack and at the end of the episode he leaves home to find work in London. Freda goes to Doris's home, with offers of help,which are refused. In the last scene we hear the news broadcast that a bomb has been dropped on Hiroshima.

Michael Armstrong returns from Germany with a message from Phillip, but John is convinced he has come to see Margaret. Margaret meets Michael's girlfriend, Frances Redmayne and at the end of the episode we are left with the impression that their relationship is more real than Margaret and John's marriage. Sefton tries to make up his quarrel with Edwin and Freda confides in Ian.

Mr Ashton visits his son, Phillip's grave in Germany ,and tried to find the cause of his death.

Sefton has lost most of his money in investment with Howell's dubious property, and Helen and Tony are both planning to leave home. Tony is doing well with the business. John and Margaret have marital problems and John is still seeing Marjorie. Ian and Freda's marriage is not happy, and Ian discovers that he cannot have children. Edwin is trying to tidy his life at home and at work.

Edwin is living in the past and trying to work out where he went wrong. Sefton attempts to get closer to Tony. David comes back from London and Edwin gives him a chance in the Works. John and Margaret decide to try and make a success of their marriage and Edwin helps them by giving them the deeds to the Ashton house. Doris has her baby and Freda and Ian accept the fact that they can't have a family. The final episode ends with Edwin and Sefton listening to King George's post victory Christmas speech.