Kat briefly works the market again, but marker inspector Aleks Shirovs (Kristian Kiehling) forces her off her stall when he discovers she is working and claiming maternity benefit. Alfie lies to her that he has managed to convince the council to give them more time to rally together the money they need, but secretly plans to claim house insurance by setting fire to their house. He does so, but is unaware Kat is inside. She becomes trapped although Alfie rescues her. She is badly burnt and suffers permanent scarring to her face. On leaving hospital, she and Alfie remarry with two nurses as the only witnesses, before returning to the square and moving into a flat Alfie has organised for them to squat in. When the owners arrive, they are thrown out and Kat is angry with Alfie, although out of desperation they squat in a new flat with help from Donna. Lee Carter (Danny-Boy Hatchard) calls the landlord of the flat when trying to fix the boiler, so they are evicted again and they stay at The Queen Vic with Alfie's friend Mick Carter (Danny Dyer). After Kat makes an emotional speech to the social housing manager, they are offered a council house in Hull. Stacey tries to stop her but before they leave Kat discovers a photo of Nana that was not lost in the house. Alfie confesses that it was he who started the fire. Kat, appalled by the disclosure, insists their marriage is over and stays with Stacey and Lily. Mo tells Kat that Harry left her some money in his will. Alfie finds out, and tries to convince her to use the money to make a fresh start after the divorce. She takes the cheque from Mo and later rips it up in front of Alfie, insisting it doesn't change the past nor their impending divorce.