Throughout the day, we'll be keeping an updated list of all the latest appointments, demotions and sackings from the Cabinet reshuffle. Here's the latest:
George Osborne HOLD
As the economic recovery continues, Cameron has kept his No 2 in place to remain working on the “longterm economic plan”.
Theresa May HOLD
Despite the recent passport office fiasco and the botched appointment of Baroness Butler-Sloss to head the child sex abuse inquiry, May has survived as the most senior women in the Government.
Out: William Hague
Hague has been moved to Leader of the Commons, so will remain as one of David Cameron’s right hand men until he steps down from Parliament next year.
In: Philip Hammond
A known Eurosceptic who has voiced his view that Britain should leave the EU unless more powers are repatriated, Hammond will now be central to those negotiations in Brussels.
Out: Philip Hammond
In: Michael Fallon
Previously presiding over a diverse ministerial portfolio including energy, business enterprise and the city of Portsmouth, Fallon, known for his crisis-management skills, has been promoted to the Cabinet.
Out: Michael Gove
Demoted to Chief Whip, Gove’s controversial education reforms made him unpopular with teachers and he was damaged by a recent high-profile spat with May; now to do more broadcast for the government.
In: Nicky Morgan
An acolyte of George Osborne in her former Financial Secretary to the Treasury role, Morgan’s was one of the top female promotions; she was also awarded equalities brief, a controversial choice given she voted against same sex marriage.
Out: Owen Paterson
The right-wing climate change sceptic has been demoted from the Cabinet, leading environmental groups to crow. His handling of the winter floods and badger culling exercise had been widely criticised.
In: Liz Truss
Described as a “human hand grenade” while Education Minister, feisty and ambitious Truss was the second women to be appointed Secretary of State today.
Out: Sir George Young
The 72-year-old is out of the Cabinet altogether; he is set to retire from Parliament at next May’s election after 41 years as an MP.
In: Michael Gove
Leader of the House
Out: Andrew Lansley
Demoted from the Government, Lansley has also lost out on the nomination to be Britain’s European Commissioner, a role for which he was widely touted – a bad day.
In: William Hague
Out: David Jones
The Welsh-speaker and proud Welshman returns to the back benches after less than two years.
In: Stephen Crabb
Formerly Jones’ deputy, the MP for Preseli Pembrokeshire is the only man sporting a beard to enter the Cabinet.
Out: David Willetts
Known as “Two brains”, Willetts immediately announced his intention to step down as an MP next year following his resignation last night.
In: Greg Clark
Clark added universities to his brief and will also continue as minister for cities and local growth.
Leader of the House of Lords
Out: Lord Hill
Cameron has selected the respected peer as Britain’s nominee for European Commissioner, avoiding sparking a by-election if he had chosen an MP.
In: Baroness Stowell
Last year the former No 10 aide to John Major steered the gay marriage Bill through the Lords, after which she was promoted to the role of communities and local government minister.
Out: Dominic Grieve
The Government’s most senior legal adviser since 2010 was demoted from the Cabinet; he has admitted he is “sad” to lose the role.
In: Jeremy Wright
Previously junior justice minister, Wright has kept a low profile: Sky’s Adam Boulton admitted today that he would struggle to pick Wright out in an identity parade.
Minister of State for Business, Enterprise and Energy
Out: Michael Fallon
In: Matthew Hancock (who will attend Cabinet, and be minister for Portsmouth)
Clearly forgiven for posing in front of “Sack Cameron” graffiti last week, he reportedly used to prep the Prime Minister before PMQs and is another of Osborne’s protégés to rise.
Minister of State for the Home Office and Ministry of Justice (police minister)
Out: Damian Green
Sacked last night, Green’s departure was described as “inexplicable” by political commentator Ian Dale, who noted him as a “good media performer and original thinker”.
In: Mike Penning
The former fireman has been promoted after being appointed disabilities minister last October.
Minister of State for Business and Education
Out: Matthew Hancock
In: Nick Boles (he will also have responsibility for equal marriage legislation)
Formerly Minister for Planning and Development, Boles will now preside over adult skills, apprenticeships and business support.
Minister of State for the Department of Work and Pensions (minister for disabled people)
Out: Mike Penning
In: Mark Harper
After resigning swiftly and honourably earlier this year when he discovered his cleaner was working in the UK illegally, Harper has been restored to a post in the Government.
Minister of State for the Cabinet Office
In: Jo Johnson
Previously heading up David Cameron’s policy unit and a junior Cabinet Office minister, Boris’s brother has been promoted to minister of state.
Financial Secretary to the Treasury
Out: Nicky Morgan
In: David Gauke
Previously the Exchequer Secretary, Gauke has been bumped up a notch in the Treasury.
Minister of State for Transport
In: John Hayes
Hayes will also carry on as a Cabinet Office minister, where his role was described as the Prime Minister’s envoy to the backbenches.
Lord Privy Seal
Out: Andrew Lansley
In: Oliver Letwin
A Cabinet Office minister for government policy, Letwin’s promotion today has been described as tokenistic.
Exchequer Secretary to the Treasury
Out: David Gauke
In: Priti Patel
The right-wing former PR executive joined the government and will now deal with tax policy.
Minister for Schools
Out: Liz Truss
In: Nick Gibb
Returning to his old post, Gibb will be “working with Nicky Morgan to ensure no let up in education reforms”, according to a tweet by Cameron.
Out: Jo Johnson
In: Brooks Newmark (he will also be minister for civil society)
The Braintree MP has joined the Government. Formerly a whip between 2010 and 2012.
Minister for Communities
Out: Baroness Stowell
In: Brandon Lewis
Local government minister Lewis was promoted to Minister of State.
Ken Clarke, minister without portfolio, is out of the Cabinet entirely.
Nicky Morgan will hold her current position as minister for women alongside the education brief.
Also out are Nick Hurd, minister for civil society (replaced by Brooks Newmark); Alan Duncan, international development minister (replaced by Desmond Swayne, a former whip); Greg Barker, energy minister.
Lord Hill is nominated for European Commissioner.
Esther McVey, employment minister (number two in the Department of Work and Pensions) will stay there, but attend Cabinet meetings.
Anna Soubry moves up to minister of state at Defence.
Penny Mordaunt is a parliamentary under secretary at Communities and is responsible for coastal communities.
Amber Rudd becomes a parliamentary under secretary at the department of energy and climate change.
Claire Perry becomes a parliamentary under secretary at transport with responsibility for rail.
Robert Buckland is the new solicitor-general.
Julian Brazier becomes a junior defence minister.
George Freeman becomes minister for life sciences.
Ed Vaizey becomes minister for digital industries.
Andrew Murrison moves from defence to join the Northern Ireland office as a junior minister.
Oliver Letwin remains as minister for government policy and becomes Lord Privy Seal.
Alun Cairns becomes parliamentary under secretary for the Wales office and will be Government Whip.
Sam Gymiah becomes parliamentary under secretary at the Department for Education.
Mel Stride, Therese Coffey, Ben Wallace and Damian Hinds become Assistant Government Whips.
Over at the Spectator, Fraser Nelson is reporting that Liam Fox was offered a minister of state role at the Foreign Office, but declined it. Fox has now confirmed this.