Steve is hung-over in the flat whilst Karen has spent the night at Janice's flat. Janice is providing a sympathetic ear and tells that her she can stay as long as she likes. It's Joshua's first birthday and Fred and Ashley interview three candidates for the nanny position. Tyrone provides an alibi for Katy's absence the previous night, and Tommy again warns him to keep away from her. Joe returns to Underworld from Wolverhampton - Janice tells him that Karen's not well and won't be in, but he's suspicious that there's more to the situation. Roy helps Jack and Kirk with a crossword. Steve confides in Eileen as Janice gives him a hard time for what he's done to Karen. Tommy tells Katy that she's grounded and can't go to the concert. Steve confronts Joe in the Rovers for taking his wife off him. Joe convinces him that nothing has happened between him and Karen, and Steve realises how big a mistake he's made.