Two first-half tries from winger Hosea Gear and number eight Kieran Read proved decisive for New Zealand, with fly-half Dan Carter contributing the rest of their points with the boot.
Trailing 17-3 at half-time, England clawed their way back into the match with a Dylan Hartley try but were undone by errors at key moments which denied them the opportunity to overhaul the All Blacks.
England had started brightly, running the ball back at New Zealand from the kick-off and flying into tackles.
But after a promising England attack broke down after a knock-on by Nick Easter, the All Blacks were soon into their stride and the English were to spend much of the opening quarter struggling to keep their opponents at bay.
With New Zealand being able to punch holes in the opposition midfield seemingly at will, it was only a matter of time before the pressure told, and midway through the first half England's defence finally cracked.
Sonny Bill Williams burst through the centre and off-loaded deftly to Jerome Kaino who fed Gear to touch down in the corner after prolonged deliberations by the video referee.
Carter made it 7-0 with the conversion and moments later New Zealand doubled their lead, Read bulldozing his way from the breakdown after a five-metre scrum to leave England rocking.
Toby Flood put England's first points on the board with a penalty on 25 minutes but the home side squandered the little attacking momentum they managed to generate for the remainder of the half.
All too often English forays into New Zealand territory ended fruitlessly, loosehead Andrew Sheridan being robbed of the ball in contact in one promising passage of play near the All Black posts.
New Zealand extended their lead through a Carter penalty which made it 17-3, but Flood missed the chance to reduce the deficit when he missed a three-pointer from distance and almost in line with the posts.
On the stroke of half-time England finally mounted an attack near the New Zealand line, but though fullback Ben Foden was driven over the All Black defence managed to hold the Northampton player up.
England got off to a solid start in the second half when pressure at the scrum forced a New Zealand penalty and Flood added the three points.
But the All Blacks responded almost immediately through Carter's second penalty to make it 20-6 after captain Lewis Moody was offside at the breakdown.
England came roaring back moments later though, with an opportunist try launched from inside their own 22 when Chris Ashton took a quick mark and tap to burst forward and offload to Mike Tindall.
A kick forward by Flood took England to the New Zealand and replacement hooker Hartley managed to sneak the ball through to touch down for a converted try to take England to within seven points.
Yet once again the home side gave away a needless penalty straightaway to allow New Zealand to restore their 10-point cushion, Carter kicking a penalty after the English failed to release to make it 23-13.
Flood and Carter swapped penalties shortly afterwards but with England refusing to admit defeat the New Zealanders were put under fierce pressure which told when Jerome Kaino was sinbinned for infringing.
England thought they had closed the gap to five points with three minutes to ago when Shontayne Hape went over in the corner only for to be adjudged to have been in touch by the video referee.
England thought they had closed the gap to five points with three minutes to ago when Shontayne Hape went over in the corner only for to be adjudged to have been in touch by the video referee.
