Shelley and Fran are spending the night in their new house, which is undergoing renovation. Fran hears something scuttling inside in a bin liner. Shelley admits he forgot to throw the bag out. Their debate on whether to dispose of the rodent mutates into a heated discussion on his job.

The day of reckoning arrives and Shelley goes to his local DHSS office to sign on for the dole.

Shelley, once more with bags of time on his hands, is attempting to put up kitchen shelves, when he is interrupted by Paul 'Bunter' Englund ( Warren Clarke ), the best man at his recent wedding. Bunter is in a state of high anxiety. The police are after him.

Having blown his latest job interview through telling the truth ( that he hates work in all its forms ), Shelley decides to try lying his way into a top job at the Foreign Office. The panel are a sinister bunch, headed by Grace Lissier ( Gaye Brown ), a cross between 'Millicent Fritton' of St.Trinians and 'Rosa Klebb' of SMERSH.

Shelley is having a quiet cup of tea and reading a paper in Arthur's café, when a tramp ( Nicholas Le Prevost ) sits down and mutters: "What is life?". Rather than tell the guy, Derek Nayland, to sling his hook, Jim engages him in a heated discussion about life, the universe and everything.

Shelley is attempting to do all the rewiring in his and Fran's new home, while she, heavily pregnant, watches him. His monologue about his woodwork teacher - 'Mr.Smiley' - is cut short when Mrs.H. shows up, and starts complaining about the Moroccans who have moved into her boarding house. Then salesman Mr.Croft tries to persuade Shelley he has Dry Rot under the stairs...

The third season of 'Shelley' ends with the birth of his and Fran's daughter, whom they christen 'Emma' ( named after Hywel Bennett's real-life daughter ). Fran insists on her husband being present at the birth.