Boris Johnson has named Nadhim Zahawi as the new Chancellor after Rishi Sunak's bombshell resignation.
Downing Street confirmed the Education Secretary would be promoted to replace Mr Sunak, with Universities Minister Michelle Donelan taking over at Education.
Mr Johnson's Chief of Staff Steve Barclay has become the new Health Secretary.
The Prime Minister was forced into a crisis reshuffle tonight after Mr Sunak and Health Secretary Sajd Javid dramatically quit as Tory anger mounted over the Prime Minister's handling of the Chris Pincher saga.
Mr Zahawi, whose family fled Iraq when he was only 9-years-old, has had a meteoric rise to the second most important job in Government.
He was widely praised for his role as Vaccines Minister during the pandemic, before taking over as Education Secretary from Gavin Williamson last September.
He has spoken about how he was bullied at school after he arrived in the UK unable to speak English.
Believed to be one of the richest MPs, he helped found polling company YouGov after studying chemical engineering at University College London.
He became MP for Stratford-upon-Avon in 2010 and was appointed as a junior education minister by Theresa May before rising through the ranks.
Mr Zahawi takes on the job as Chancellor at a critical time, with only months to prepare for a crucial autumn Budget amid a spiralling the cost of living crisis.
He is succeeded as Education Secretary by Michelle Donelan, a junior minister in the department.
Meanwhile, Cabinet Office Minister Steve Barclay has been named as the new Health Secretary.
Mr Barclay was already doing two jobs, also serving as a Cabinet Office minister, but he was moved following last night's resignations.
It is the most senior job so far for Mr Barclay, who has risen steadily through Tory ranks and was seen as a solid operator in a new-look No10 team.
Mr Barclay went to £12,000-a-year King Edward VII school in Lytham St Annes, Lancashire, and studied history at Cambridge. He spent his gap year in the army - serving with the Royal Regiment of Fusiliers.
He was promoted to a government whip under David Cameron in 2015 before rattling through junior ministerial jobs - first at the Treasury, then at the Department of Health.
He was later named Brexit Secretary under Theresa May and stayed loyal to Boris Johnson, becoming his Chief of Staff and Cabinet Office minister.
He tweeted last night: "Delighted to be back at @DHSCgovuk taking up the role of Health & Social Care Secretary. Looking forward to working with the fantastic @NHSEngland & social care staff. Together we will beat the Covid backlogs, boost patient access & ensure health services deliver for everyone."
It comes after the shock resignation of Mr Sunak and Mr Javid, which has left the scandal-hit Prime Minister, who is fighting for his political life once again after months of sleaze and scandal.
Only 10 days ago Mr Johnson boasted he was “thinking actively” about a third term in office - that would keep him in No10 until the “mid-2030s”.
But tonight his authority was rocked by a wave of departures, as several Tories followed Mr Javid and Mr Sunak out the door.
Bim Afolami quit as Tory vice-chair live on TV, Andrew Murrison resigned as a trade envoy to Morocco and ministerial aides Jonathan Gullis, Saqib Bhatti, Nicola Richards and Virginia Crosbie left their roles.
As tensions boiled over, MP Anthony Browne announced he had resubmitted a letter of no confidence in the PM and more letters were expected to follow.
Mr Johnson had been battling mounting Tory anger after it emerged he was told about a complaint made against Mr Pincher in 2019 - despite No10 initially saying he was unaware.
Downing Street then admitted Mr Johnson did know about the allegations of inappropriate behaviour but claimed he had forgotten about it.
Moments before the resignations began, the PM admitted appointing Mr Pincher as Deputy Chief Whip in February was a "mistake".
In a letter posted on Twitter, Mr Javid said: "Given the unprecedented scale of the challenges in health and social care, it has been my instinct to continue focusing on this important work.
"So it is with most enormous regret that I must tell you that I can no longer, in good conscience, continue serving in this government."
He said the public "rightly expect integrity" from the government, adding: "The tone you set as leader, and the values you represent, reflect on your colleagues, your party and ultimately the country."
In a twist of the knife, Mr Javid said: "The vote of confidence last month showed that a large number of our colleagues agree. It was a moment for humility, grip and new direction.
"I regret to say, however, that it is clear to me that this situation will not change under your leadership - and you have therefore lost my confidence too."
Only minutes later, Mr Sunak broke cover and posted his own resignation letter.
The Chancellor said he had not taken the decision to step down lightly as Britain grapples with the cost of living crisis and the war in Ukraine.
The Prime Minister's authority had already been damaged by a confidence vote which saw 41% of his own MPs withdraw their support.
Tonight's events leave him battling for his political life and MPs speculating privately over whether his days are numbered.
Labour leader Keir Starmer called for a general election, saying: "Only a real change of government can give Britain the fresh start it needs."
