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.

On his own again after the gang was broken up by Combo's terrifying acts of violence, hapless Shaun is a magnet for trouble. Then a chance encounter reunites him with Woody, Lol, Smell and the others and soon the past is forgotten. The gang are back together and they're all looking for love, a laugh, a job and something that resembles a future.

A story about a troubled boy growing up in England, set in 1983. He comes across a few skinheads on his way home from school, after a fight. They become his new best friends, even like family. Based on experiences of director Shane Meadows.