The Department for Education confirmed that Loughton, the minister with responsibilities covering young people and safeguarding, will be taking part in the Working Families Everywhere programme.
Under the initiative Loughton will be among ministers who will mentor a family that has experienced generations of worklessness, to encourage its members to find employment and become less reliant on the welfare state.
Loughton had previously spent time with a family in a Birmingham estate for the Channel 4 documentary Tower Block of Commons, which was broadcast in February 2010.
Rohan Silva, one of David Cameron’s senior policy advisers, is also said to have volunteered to take part in the programme, but employment minister Chris Grayling, who was initially announced as one of the participants, has denied being involved.