By the time the conquest of Normandy was completed, events of equal interest had taken place in England, involving the fall of the powerful and shifty Earl of Essex, Geoffrey de Mandeville. Soon after Easter, 1142, he had found an opportunity for another prudent and profitable change of sides. The king had fallen ill on his return from the north, and, once more, as at the beginning of his reign, the report of his death was spread abroad. Geoffrey seems to have hurried at once to the Empress, as a probable source of future favours, and to have carried with him a small crowd of his friends and relatives, including the equally unscrupulous Hugh Bigod, Earl of Norfolk. Matilda, who was then at Oxford, and had no prospect of any immediate advance, was again ready to give him all he asked. Her fortunes were at too low an ebb to warrant her counting the cost, and in any case what she was buying was of great value if she could make sure that the sellers would keep faith. Geoffrey, with his friends, and Nigel, Bishop of Ely, who was already on her side, controlling Essex, Hertford, Norfolk, Suffolk, and Cambridge, could give her possession of as large a territory on the east of England as she now held on the west, and this would very likely carry with it the occupation of London once more, and would threaten to cut the kingdom of Stephen into two detached fragments. Geoffrey was in a position to drive a good bargain, and he did so. New lands and revenues, new rights and privileges, were added to those he had already extorted from both sides; the Empress promised to make no peace without his consent with his "mortal enemies," the burghers of London, towards whom she probably had herself just then no great love. Geoffrey's friends were admitted to share with him in the results of his careful study of the conditions of the market, especially his brother-in-law, Aubrey de Vere, who was made Earl by his own choice of Cambridge, but in the end of Oxford, probably because Matilda's cousin, Henry of Scotland, considered that Cambridge was included in his earldom of Huntingdon. What price was offered to Hugh Bigod, or to Gilbert Clare, Earl of Pembroke, who seems to have been of the number, we do not know.

As a matter of fact, neither Geoffrey nor the Empress gained anything from this bargaining. Stephen was not dead, and his vigorous campaign of the summer of 1142 evidently made it seem prudent to Geoffrey to hold his intended treason in reserve for a more promising opportunity. It is probable that Stephen soon learned the facts, before very long they became common talk, but he awaited on his side a better opportunity to strike. The earl had grown too powerful to be dealt with without considering ways and means. Contemporary writers call him the most powerful man in England, and they regard his abilities with as much respect as his possessions and power. Stephen took his opportunity in the autumn of 1143, at a court held at St. Albans. The time was not wisely chosen. Things had not been going well with him during the summer. At Wilton he had been badly defeated by the Earl of Gloucester, and nearly half of England was in Matilda's possession or independent of his own control. But he yielded to the pressure of Geoffrey's enemies at the court, and ordered and secured his arrest on a charge of treason. The stroke succeeded no better than such measures usually did with Stephen, for he was always satisfied with a partial success. A threat of hanging forced the earl to surrender his castles, including the Tower of London, and then he was released. Geoffrey was not the man to submit to such a sudden overthrow without a trial of strength. With some of his friends he instantly appealed to arms, took possession of the Isle of Ely, where he was sure of a friendly reception, seized Ramsey Abbey, and turning out the monks made a fortress of it, and kept his forces in supplies by cruelly ravaging the surrounding lands.

It has been thought that the famous picture of the sufferings of the people of England during the anarchy of Stephen's reign, which was written in the neighbouring city of Peterborough, where the last of the English Chronicles was now drawing to its close, gained its vividness from the writer's personal knowledge of the horrors of this time; and this is probable, though he speaks in general terms. His pitiful account runs thus in part: "Every powerful man made his castles and held them against him [the king]; and they filled the land full of castles. They cruelly oppressed the wretched men of the land with castle-works. When the castles were made, they filled them with devils and evil men. Then took they those men that they thought had any property … and put them in prison for their gold and silver, and tortured them with unutterable torture; for never were martyrs so tortured as they were. They hanged them up by the feet and smoked them with foul smoke; they hanged them by the thumbs or by the head and hung armour on their feet; they put knotted strings about their heads and writhed them so that they went into the brain. They put them in dungeons in which were adders, and snakes, and toads, and killed them so…. Then was corn dear, and flesh, and cheese, and butter; for there was none in the land. Wretched men died of hunger; some went seeking alms who at one while were rich men; some fled out of the land. Never yet had more wretchedness been in the land, nor ever did heathen men do worse than they did; for oftentimes they forbore neither church nor churchyard, but took all the property that was therein and then burned the church and all together…. However a man tilled, the earth bare no corn; for the land was all fordone by such deeds; and they said openly that Christ and his saints slept."

Geoffrey de Mandeville's career of plundering and sacrilege was not destined to continue long. Towards the end of the summer of 1144, he was wounded in the head by an arrow, in an attack on a fortified post which the king had established at Burwell to hold his raids in check; and soon after he died. His body was carried to the house of the Templars in London, but for twenty years it could not be received into consecrated ground, for he had died with his crimes unpardoned and under the ban of the Church, which was only removed after these years by the efforts of his younger son, a new Earl of Essex. To the great power for which Geoffrey was playing, to his independent principality, or to his possibly even higher ambition of controlling the destinies of the crown of England, there was no successor. His eldest son, Ernulf, shared his father's fall and condemnation, and was disinherited, though from him there descended a family holding for some generations a minor position in Oxfordshire. Twelve years after the death of Geoffrey, his second son—also Geoffrey—was made Earl of Essex by Henry II, and his faithful service to the king, and his brother's after him, were rewarded by increasing possessions and influence that almost rivalled their father's; but the wilder designs and unscrupulous methods of the first Earl of Essex perished with him.

The years 1144 and 1145 were on the whole prosperous for Stephen. A number of minor successes and minor accessions from the enemy made up a general drift in his favour. Even the Earl of Gloucester's son Philip, with a selfishness typical of the time, turned against his father; but the most important desertion to the king was that of the Earl of Chester, who joined him in 1146 and made a display of zeal, real or pretended, in his service. Starting with greater power and a more independent position than Geoffrey de Mandeville, and perhaps less openly bartering his allegiance to one side and the other at a constantly rising price, he had still pursued the same policy and with even greater success. His design was hardly less than the carving out of a state for himself from western and northern England, and during much of this disjointed time he seems to have carried himself with no regard to either side. To go over to the king so soon after the fall of the Earl of Essex was, it is likely, to take some risk, and as in the former case there was a party at the court which influenced Stephen against him. His refusal, notwithstanding his zeal, to restore castles and lands belonging to the king, and his attempt to induce Stephen to aid him against the Welsh, which was considered a plot to get possession of the king's person, led to his arrest. Again Stephen followed his habitual policy of forcing the surrender of his prisoner's castles, or certain of them, and then releasing him; and again the usual result followed, the instant insurrection of the earl. His real power had hardly been lessened by giving up the king's castles,—to which he had been forced,—and it was not easy to attack him. On a later visit of the young Henry to England, he obtained from him, and even from the king of Scotland, to whom he had long been hostile, large additions to his coveted principality in the west and north; but Stephen at once bid higher, and for a grant including the same possessions and more he abandoned his new allies. On Henry's final visit, in 1153, when the tide was fairly turning in his favour, another well-timed treason secured the earl his winnings and great promises for the future; but in this same year he died, poisoned, as it was believed, by one whose lands he had obtained. Out of the breaking up of England and the helplessness of her rulers arose no independent feudalism. Higher titles and wider lands many barons did gain, but the power of the king emerged in the end still supreme, and the worst of the permanent evils of the feudal system, a divided state, though deliberately sought and dangerously near, was at last averted.

With the death of Pope Innocent II, in September, 1143, a new period opened in the relation of the English Church and of the English king towards the papacy. Innocent had been on the whole favourable to Stephen's cause. His successor, Celestine II, was as favourable to Anjou, but his papacy was so short that nothing was done except to withhold a renewal of Henry of Winchester's commission as legate. Lucius II, who succeeded in March, 1144, sent his own legate to England; but he was not a partisan of either side, and seems even—perhaps by way of compensation—to have taken steps towards creating an independent archbishopric in the south-west in Henry's favour. His papacy again lasted less than a year, and his successor, Eugenius III, whose reign lasted almost to the end of Stephen's, was decidedly unfriendly. Henry of Winchester was for a time suspended; and the king's candidate for the archbishopric of York, William Fitz Herbert, afterwards St. William of York,—whose position had long been in doubt, for though he had been consecrated he had not received his pallium,—was deposed, and in his place the Cistercian Abbot of Fountains, Henry Murdac, was consecrated by the Cistercian pope. This was the beginning of open conflict. Henry Murdac could not get possession of his see, and Archbishop Theobald was refused permission to attend a council summoned by the pope at Reims for March, 1148. He went secretly, crossing the channel in a fishing boat, and was enthusiastically received by the pope. The Bishop of Winchester was again suspended, and other bishops with him; several abbots were deposed; and Gilbert Foliot, a decided partisan of Matilda's, was designated Bishop of Hereford. The pope was with difficulty persuaded to postpone the excommunication of Stephen himself, and steps were actually taken to reopen before the Roman court the question of his right to the throne. Stephen, on his side, responded with promptness and vigour. He refused to acknowledge the right of the pope to reopen the main question. The primate was banished and his temporalities confiscated. Most of the English clergy were kept on the king's side, and in some way—there is some evidence that the influence of Queen Matilda was employed—the serious danger which threatened Stephen from the Church in the spring of 1148 was averted. Peace was made in November with Archbishop Theobald, who had ineffectually tried an interdict, and he was restored to his see and revenues. The practical advantage, on the whole, remained with the king; but in the course of these events a young man, Thomas Becket, in the service of the archbishop, acquired a training in ideas and in methods which was to serve him well in a greater struggle with a greater king.

In the spring of the next year, young Henry of Anjou made an attempt on England, and found his enemies still too strong for him. In the interval since his first visit, Robert of Gloucester, the wisest of the leaders of the Angevin cause, had died in his fortress of Bristol in 1174; and in February of 1148, Matilda herself had given up her long and now apparently hopeless struggle in England, and gone back to the home of her husband, though she seems to have encouraged her son in his new enterprise by her presence in England at least for a time.[43] The older generation was disappearing from the field; the younger was preparing to go on with the conflict. In 1149 Henry was sixteen years old, a mature age in that time, and it might well have been thought that it was wise to put him forward as leader in his own cause. The plan for this year seems to have been an attack on Stephen from the north by the king of Scotland in alliance with the Earl of Chester, and Henry passed rapidly through western England to Carlisle, where he was knighted by King David. Their army, which advanced to attack Lancaster, accomplished nothing, because, as has been related, the allegiance of Ralph of Chester, on whom they depended, had been bought back by Stephen; and Stephen himself, waiting with his army at York, found that he had nothing to do. The Scottish force withdrew, and Henry, again disappointed, was obliged to return to Normandy.

Three years later the young Henry made another and finally successful attempt to win his grandfather's throne, but in the interval great changes had occurred. Of these one fell in the year next following, 1150. Soon after Henry's return from England, his father had handed over to him the only portion of his mother's inheritance which had yet been recovered, the duchy of Normandy, and retired himself to his hereditary dominions. Geoffrey had never shown, so far as we know, any interest in his wife's campaigns in England, and had confined his attention to Normandy, in which one who was still primarily a count of Anjou would naturally have the most concern; and of all the efforts of the family this was the only one which was successful. Now while still a young man, with rare disregard of self, he gave up his conquest to his son, who had been brought up to consider himself as belonging rather to England than to Anjou. On the other side of the channel, during this year 1150, Stephen seems to have decided upon a plan which he bent every effort in the following years to carry out, but unsuccessfully,—the plan of securing a formal recognition of his son Eustace as his successor in the throne, or even as king with him. At least this is the natural explanation of the reconciliation which took place near the close of the year, between Eustace and his father on one side and Henry Murdac on the other, by which the archbishop was at last admitted to his see of York, and then set off immediately for Rome to persuade the pope to recognize Eustace, and even to consecrate the young man in person.

In England the practice of crowning the son king in the father's lifetime had never been followed, as it had been in some of the continental states, notably in France; but the conditions were now exactly those which would make such a step seem desirable to the holder of the crown. By this means the Capetian family had maintained undisputed possession of the throne through turbulent times with little real power of their own, and they were now approaching the point when they could feel that the custom was no longer necessary. The decision to attempt this method of securing the succession while still in possession of power, rather than to leave it to the uncertain chances that would follow his death, was for Stephen natural and wise. It is interesting to notice how indispensable the consent of the Church was considered, as the really deciding voice in the matter, and it was this that Stephen was not able to secure. The pope—this was about Easter time of 1151—rejected almost with indignation the suggestion of Murdac, on the ground of the violated oath, and forbade any innovation to be made concerning the crown of England, because this was a subject of litigation; he also directed, very probably at this time, the Archbishop of Canterbury, it was said at the suggestion of Thomas Becket, to refuse to crown Eustace.

With his duchy of Normandy, Henry had inherited at the same time the danger of trouble with the king of France, for his father had greatly displeased Louis by laying siege to the castle of a seditious vassal of Anjou who happened to be a favourite of the king. It would seem that this state of things suggested to Eustace an attack on Normandy in alliance with King Louis, but the attempt was fruitless. Twice during the summer of 1151 French armies invaded Normandy; the first led by the king himself. Both invasions were met by Henry at the head of his troops, but no fighting occurred on either occasion. On the second invasion, Louis was ill of a fever in Paris, and negotiations for peace were begun, the Church interesting itself to this end. Geoffrey and Henry certainly had no wish for war. The king's friend, who had been captured, was handed over to him; the Norman Vexin was surrendered to France; and in return Louis recognized Henry as Duke of Normandy and accepted his homage. Henry at once ordered an assembly of the Norman barons, on September 14, to consider the invasion of England; but his plans were interrupted by the sudden death of his father a week before this date. Geoffrey was then in his thirty-ninth year. The course of his life had been marked out for him by the plans of others, and it is obscured for us by the deeper interest of the struggle in England, and by the greater brilliancy of his son's history; but in the conquest of Normandy he had accomplished a work which was of the highest value to his house, and of the greatest assistance to the rapid success of his son on a wider field.