East Hammersmith MP Stephen Timms is returning as Treasury Financial Secretary in place of Ruth Kelly.
Timms held the role from 1999 to 2001, assu-ming responsibility for banking, financial services and insurance.
He oversaw the introduction of the 1 per cent cap on pensions and regulation of the long-term care sector but refused to change the law to force life offices to disclose the market for traded end-owment policies to people looking to surrender their policies.
He was also briefly pensions minister in 1999 at the time that the price cap level was first under serious consideration but was kept at one per cent.
Timms moves from his role as minister for energy, e-commerce and postal services at the DTI. He was previously minister for schools and minister for social security.
The Jackson Consul-tancy managing director Ralph Jackson says: “It is always good to have someone in the role who has inside knowledge of the Treasury and the Department for Work and Pen-sions. Timms is regarded as a safe pair of hands, a bright man who works very hard in his constituency.”