Hilda celebrates her birthday. Stan buys her a jewellery box. Mr Melia, the solicitor, tells her that the council have made an offer out of court. Stanley Fairclough writes to Rita telling her that he has no money and is unemployed. She realises he's after money. Mavis warns Rita that Alf is obviously keen on her. Mr Melia tells the Ogdens that the council are offering £200. The Ogdens are disappointed but agree. Percy refuses to give his raffle ticket up, even when Fred offers him £2. Fred goes for him, threatening him with violence but Percy is undaunted. Alf tells Rita that she's attractive and still has a life to lead. Terry gives Hilda T-bone steaks for her birthday. Jack advises Fred to buy tickets off himself and include them in the raffle with Percy's ticket. He gets Hilda to draw the raffle. Hilda draws Percy's ticket and Fred is devastated.