Sissy visits Rachael every night as they wait for news of Stephen. One night, as they are walking past Bounderby’s house, they see Mrs. Sparsit dragging Mrs. Pegler into the house. Mrs. Sparsit tells Bounderby she has found the old woman, who was seen in Blackpool’s apartment before the robbery, and has brought him the possible accessory to the crime for questioning. But far from being pleased, Bounderby is furious: Mrs. Pegler is his mother, and as their encounter falls out, it becomes clear to the assembled company that she did not abandon him in the gutter, as he had claimed. Rather, she raised, educated, and loved him. He abandoned her, refusing to allow her to visit him now that he has become wealthy and successful. The myth of Bounderby, the self-made man, is exploded, and he refuses to offer an explanation for his former lies about his past.
Stephen still fails to appear. One morning, Sissy takes Rachael for a walk in the country to restore her strength, and they discover Stephen’s hat. Rachael instantly fears that he has been murdered, but, after walking on a little farther, they discover that he has fallen down an old mining pit called Old Hell Shaft and is still clinging to life. The women seek help, and a large crowd assembles around the pit. A rescue team manages to lift Stephen out, and a doctor attends to his injuries. Nonetheless, after bidding a loving farewell to Rachael and telling Louisa to have Gradgrind ask Tom for the information that will clear his name, Stephen dies.
When the crowd disperses, Tom is missing. Back at Stone Lodge, Gradgrind and Louisa feel that their fears are confirmed: Tom robbed the bank. Louisa reveals that Sissy encouraged Tom to seek refuge with Mr. Sleary’s circus, currently camped near Liverpool. From there, Tom might leave England on one of the many boats sailing for South America or the Indies. Relieved that Tom might escape prison, Sissy, Louisa, and Gradgrind set out in two separate coaches for Mr. Sleary’s circus, hoping to send Tom safely out of the country. Louisa and Sissy travel all night and reunite with Sleary, who tells Sissy that Tom is safe. Gradgrind arrives not long after. They are joined by the sullen Tom, who has been participating in the circus performance dressed up in blackface. They agree to send him up the coast to Liverpool, where he can book passage out of the country. Tom is rude to Louisa, blaming her for his predicament because she refused to finance his gambling habit, but she cries out that she forgives him and that she loves him still. Suddenly, the pale-faced Bitzer appears and says that Tom cannot leave, for he intends to take him back to Coketown and hand him over to the police.
With the assistance of some of Sleary’s circus people, Bitzer takes Tom to arrange rail passage back to Coketown. However, Sleary double-crosses Bitzer with a trick involving madly barking dogs and dancing horses, which enables Tom to escape aboard ship after all. The next morning, Tom’s family learns that he is safely away from England. Sleary has one more surprise in store: he confides to Gradgrind that Merrylegs, Sissy’s father’s dog, has unexpectedly returned alone to the circus, a sure sign that her father is dead.
In the aftermath of the incident with Mrs. Pegler, Bounderby fires Mrs. Sparsit and sends her away to live with her unpleasant relative, Lady Scadgers. Looking proudly at his portrait, Mr. Bounderby does not guess that he will die from a fit in the streets of Coketown in a mere five years’ time. The narrator reveals that in that future, Gradgrind will cease serving fact and will instead devote his skills and money to faith, hope, and charity. He will also publish writings exonerating the name of Stephen Blackpool. Furthermore, the narrator discloses that Louisa will never marry again. Tom will soon repent of his hostility toward his sister, and he will die abroad longing for a last look at Louisa’s face. Rachael will go on working and continue in her sweetness and good faith, and Sissy will have a large and happy family. Louisa will be deeply loved by Sissy’s children, through whom she will vicariously experience the joy and wonder of childhood. And Louisa will always strive to understand and improve the lives of her fellow human beings.
In this section, everyone gets their just desserts. The narrator demonstrates his omniscience and his moral authority by assigning futures to the main characters according to each of their situations and merits. In other words, the characters who are clearly good are rewarded with happy endings, while those who are clearly bad end up miserable. Bounderby is exposed as a fraud with the revelation that his life story is a lie designed to cover up his wretched treatment of his kindly mother. Mrs. Sparsit is packed off to Lady Scadgers, having ruined her own chances with Bounderby through her excessive nosiness. Tom manages to escape but realizes the guilt of his awful behavior after it is too late to make amends with Louisa, and he dies, missing her terribly. Sissy, of course, ends up happy. The one exception to this general rule of poetic justice is the death of Stephen Blackpool. While Stephen seems to look forward to death as a release from his miserable existence, he leaves Rachael bereft and alone after he dies. Rachael’s misery and Stephen’s undeserved death are perhaps a part of Dickens’s intent to rouse sympathy for the poor.