Elizabeth schemes to unseat Henry while he is on progress, but Margaret Beaufort catches wind of her plots and has her imprisoned with her three youngest daughters at Westminster. With the support of recently arrived Bishop Morton, and the help of an unwitting Cecily, she confines Lizzie to her rooms at the palace. Elizabeth still manages to get word out to York supporters via stableboy Ned, and suggests that one of their loyal supporters attempt an assassination. The attempt is unsuccessful, but Henry blames Lizzie. They exchange biting letters.
The knowledge that a plague is sweeping England is kept from the monarch and his wife. Maggie finds out that Elizabeth is in the palace, but Cecily convinces her to stay quiet about it so that Lizzie doesn't leave her rooms and expose herself to illness. Lady Margaret keeps the information from Henry because his troops are being blamed for bringing the plague. When his letter to Lizzie reveals that Elizabeth is being held prisoner, Lizzie also finds out about the plague. When Bishop Morton refuses to open the treasury, she orders guards to break down the doors, and sends Maggie and Teddy outside the palace walls, instructing them to see the dead buried and the ill tended to, and disperse the funds to those in need. The crowds thank the two children, and Teddy, in his excitement, starts them chanting his name. When Henry finds out about the love the public is heaping on Teddy (and Elizabeth's plan to put the boy on the throne) he has Teddy arrested and sent to the Tower. He returns to London hastily, avoiding his own people who blame him for the illness. The reach a village and the people rush out. The guard reacts, presuming that they mean to attack the king, but they all genuflect and thank him for his largesse. Lady Margaret and Bishop Morton are outraged at Lizzie's actions, but Henry thanks her instead of taking their advise to punish her. She explains that they only love her because she cared for them, and that all he must do to gain the public's favor is to rule with generosity instead of fear. When Lady Margaret senses the two are growing closer, she orders Lizzie into confinement.
Duchess Cecily is released from the Tower and allowed to visit her grandchildren. She announces that she'll be leaving for Burgundy.
Lizzie promises Maggie to convince Henry to free Teddy.