It’s the first day of term and there are two new teachers; J.P. and Penny. Kurt is hiding from Carol, Susan is falling in love with J.P. and Simon is bored. While contemplating ways to make J.P. notice her, Susan takes advice from Brian and dresses more feminine. However it is all for nothing as she finds out that he is gay. Kurt give Liz chocolate so that she will dump Carol for him. Brian hears that Penny is a lesbian and becomes obsessed with her breasts.

Simon is becoming jealous of J.P., thinking that all the girls are after him. When J.P. suggests that they try another pub, Simon gets angry and regretfully asks Bob down the local pub, leaving everyone else to try a karaoke bar. Kurt can’t seem to get the message across to Carol in a nice way so he asks for Penny’s help. She agrees to pretend to be his girlfriend in order to repel Carol. Later at the karaoke bar, Carol arrives and performs ‘Never Gonna Give You Up’ for Kurt, just as Penny decides not to help him after she is informed of Carol’s psychotic tendencies. Carol approaches a terrified Kurt and Jenny decides to put an end to it all. She walks up to Kurt and passionately kisses him, finally breaking Carol’s heart. Kurt is free, but Jenny may not be.

When Clare bans student’s facial hair in school, Kurt attempts to grow a moustache. Susan, on the other hand, is desperate to lose hers as she becomes less confident. Simon realises that he has never fancied Susan and tries really hard to change that fact. After a ‘moment’ in the photocopying room, he becomes convinced that they can be more than just friends. He takes her out to a resturant where he reveals his feelings for her. She is disgusted and decides that even though she can forget what has taken place, she cannot move in with him anymore.

J.P. tells Kurt and Brian that he is gay, which means that soon enough it becomes common knowledge. Simon and Kurt then devote much energy to convince Brian that he to is gay. The joke backfires however, when he tells Kurt that he and J.P. are a couple and they want Kurt to move out. When Kurt finally apologises, Brian comes clean and admits that he isn’t really gay. Meanwhile, Simon is disappointed at the poor ambitions of his students and lands in trouble for encouraging a student to explore the world rather than settle down. Jenny is bitter at having been left to do all the work for Careers Week and Carol finds love behind the filing cabinet.

Susan’s problem with Jenny and Alec’s none-too-private snogging and Alec’s frequent nudity comes to a peak. Initially the guys aren’t very supportive, but when J.P. brings a bloke home, Kurt and Brian begin to see her point. Susan seeks to escape the bedroom noises by going to Kurt and Brian’s flat only to find Kurt in Brian’s room as the sounds of J.P.’s tryst are hard to ignore as well. When word of Susan’s complaining gets back to Jenny, relations are further strained.

The gang begin to realize that Penny is failing as a teacher. Jenny sees it as a reflection on her mentoring but then Penny tries to get around her by flirting with Bob throwing him into full mid-life crises mode. A trip to the hospital and a word from Brian helps Bob’s put his mid-life crisis and Penny’s manipulative ways into perspective. Kurt is also forced to have a word with Penny when a student complains that her flirting with him in class is no substitute for teaching the material. Meanwhile Clare institutes an “Open Surgery” approach to counseling and Susan gets overwhelmed with walk-ins while Brian wonders why Kayla is avoiding seeking his council.

Susan decides she wants a baby, after a talk with the kids about unprotected sex. Simon tries putting her off, whilst Brian and Kurt compete to become the father.

When a student in Kurt’s I.T. Class enters his name on a web search engine, Kurt realizes that another man with the same name has accomplished a lot more than he has. This causes Simon to also realise that his life is boring, so he books a ticket abroad and announces it to a less than pleased Susan. After dropping the bomb on Clare and Bob, he becomes very unpopular with the faculty for leaving so early before the end of term. On his last day he is surprised with a party and a nice send off from his friends.

The English department is feeling a noticeable gap due to Simon’s absence, while Jenny has renewed energy to focus on work since splitting up with Alec. Penny is forced into full-time teaching to help cover Simon's classes, however she is not ready for the challenge and clashes head on with Liz, who is trying to make her teaching life difficult as payback for taking advantage of everyone when she first started. Kurt and Brian are trying to improve their communication skills so that they have the courage to refuse extra work from Clare, but they are annoyed at J.P. as he can already do this extremely well and always gets out of doing any extra work.

As Christmas draws near, the teachers, minus an absent Simon, attend the staff annual party. After Jenny tells Bob’s wife that he is very popular with the female staff, he gets lucky, over and over again. It appears that there is much Christmas spirit, as Liz tries sex with Kurt and is then disappointed with his small genitalia. Susan takes advice from Jenny and sleeps with Brian, who it turns out, is better than Kurt. Penny quickly jumps into bed with Simon’s replacement English teacher Matt, but is upset when she discovers that he is married with children. As they finish the term in the pub, Carol walks in after finishing with Errol and Kurt is delighted. The subject of their non-non-existant sex comes up and when asked why they haven’t yet done it, Kurt replies “We are saving ourselves”, to which everyone bursts out laughing.