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In 1922 he, along with most of the Conservative leadership, resigned with Lloyd George's government following the Conservative back-bench revolt against the continuance of the coalition.
Bonar Law soon became Prime Minister.
In 1922 Balfour was created Earl of Balfour.
Like many of the Coalition leaders he did not hold office in the Conservative governments of 1922 – 4, although as an elder statesman he was consulted by the King in the choice of Baldwin as Bonar Law's successor as Conservative leader in May 1923.
When asked by a lady whether " dear George " ( the much more experienced Lord Curzon ) would be chosen he replied, referring to Curzon's wealthy wife Grace, " No, dear George will not but he will still have the means of Grace.

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