DAVID BLUNKETT returned to the Government as Work and Pensions Secretary last night in the post-election reshuffle.

The former Home Secretary, who resigned over a row about his lover's nanny's visa, was handed one of the most important portfolios.

Tony Blair has made benefit reform a key priority for his third term, but with his reduced majority may well face fierce opposition from some Labour MPs.

Predecessor Alan Johnson was moved to the new post of Productivity, Energy and Industry Secretary.

Trade Secretary Patricia Hewitt switches to health, with John Reid moving to defence.

Deputy Prime Minister John Prescott appears to have lost his departmental responsibilities, being listed as First Secretary of State.

North-East MP David Miliband is promoted to the Cabinet as Minister of Communities and Local Government.

Mr Miliband, who was re-elected as MP for South Shields, will work alongside Mr Prescott in the Office of the Deputy Prime Minister. Downing Street said that the move was intended to reflect the significant increase in the department's workload.

Peter Hain moves from Commons Leader to Northern Ireland Secretary and retains responsibility for Wales.

John Hutton also joins the Government as Cabinet Office Minister, and Des Browne as Chief Treasury Secretary.

Defence Secretary Geoff Hoon becomes Leader of the House of Commons.

Gordon Brown's protg, Douglas Alexander, is promoted within the Foreign Office to become Europe Minister and will attend Cabinet meetings.

He replaces Denis MacShane, who leaves the Government.

The Prime Minister's spokesman said: "The Prime Minister's view is that he has put key public service reformers into key public service departments and it underlines the way that he and the Chancellor are working closely together".