The MP for South Staffordshire replaces Damian Hinds, who quit following the arrival of the new prime minister.
The news came as PM Boris Johnson began a string of cabinet sackings of supporters of his Tory leadership rival Jeremy Hunt.
Hinds, who has has been MP for East Hampshire since 2010, and voted remain, announced his departure on Twitter.
He tweeted he was looking forward to supporting the government from the backbenches.
He served as Exchequer Secretary to the Treasury from 2015, until he was made employment minister at the Department for Work and Pensions by Prime Minister Theresa May in 2016.
Following the 2018 cabinet reshuffle, Hinds succeed Justine Greening as education secretary.
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