Set during Christmas 1988, Lol is haunted by the devastating events that took place two and a half years before. She and Woody both find themselves struggling to cope with their lives without each other after he leaves the gang. Lol is carrying the burden of her guilt, whilst Woody is trying to build a domestic life with a new girlfriend and a potential promotion at work. Shaun has started drama college and, although still in a relationship with Smell, he has grown close to a girl performing in his Christmas play.

Shaun, Harvey, Gadget, Trev and Kelly hit up the nightlife of raves and ecstasy. Woody and Lol are happy, living together with their kids and Combo is still in prison. But things slowly change. This is the year 1990 and This is England.