Bradford MP Gerry Sutcliffe has kept his job in the Home Office re-vamp - but moved to a different department.
The former Home Office minister with responsibility for prisons will move across to the newly beefed up Department for Constitutional Affairs which will now be known as the Ministry of Justice.
The Home Office - which last year Home Secretary John Reid declared "not fit for purpose" - loses responsibility for prisons in England and Wales, which it has run since 1823.
Bradford South MP Mr Sutcliffe moves across to the new department as Prisons and Probation Minister.
He said: "I am looking forward to the new challenges of the Ministry of Justice. It is a great opportunity to see working relationships between the two departments and it is excellent to be in the start of the whole process."
The new Ministry of Justice, led by Lord Chancellor, Lord Falconer of Thoroton, will be responsible for criminal law, jails and sentencing policy - in addition to the responsibilities held by the former DCA, including the courts, tribunal, legal aid, constitutional reform and civil justice.
The prisons overcrowding crisis - with a record 80,313 now incarcerated in England and Wales - will be top of Lord Falconer's priorities.
The Home Office will continue to control security and counter-terrorism, policing, anti-social behaviour, crime reduction, immigration, asylum and ID cards.
The decision was taken to split the department after Tony Blair ordered a review of counter terrorism and security last year.
It was suggested Britain would be more secure if the department was more streamlined with one department concentrating more time on counter-terrorism.
Mr Reid told the House of Commons when the split was announced: "We are refocusing the Home Office - not for the first time in its history - towards the priorities of today's world and the priorities of today's people."
And Mr Blair said it would ensure management of offenders was "seamless" once they had been charged.
But shadow home secretary David Davis said the split would only make things worse.
"The Home Office restructure will compound existing problems and create new ones," he said.
"It will cost money, distract the management and introduce new divisions and communication failures.
"Many of the crises in the Home Office have been caused by different agencies not talking to each other - the last thing you should do is put these agencies in different departments."
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