Tory rising star David Cameron has become head of policy co-ordination under a reshuffle which splits the combined health and education portfolio.

Cameron, widely seen as a future high flyer and possible Tory leader, will report directly to Michael Howard.

The party has also announced a shake-up of senior ministers - splitting the much criticised combined role of secretary of state for health and education.

The move, which will prompt U-turn claims, follows Labour claims that Howard's decision to combine the two roles signalled that the Conservatives were failing to take schools and hospitals seriously.

The Conservatives say the decision underlines the "crucial importance" of these policy areas in the run up to the next general election.

As a result Tim Yeo leaves the health and education portfolios to become shadow Cabinet member responsible for local government, the environment and transport.

Andrew Lansley steps into the shadow Cabinet to take the health brief, with Tim Collins following suit to lead on education.

Theresa May, who had held the post now filled by Yeo, takes up a new position as shadow secretary for the family in what can be read as a demotion for the former party chairman.

David Willetts retains the position of shadow secretary of state for work and pensions but hands over the policy role to Cameron.

Reshuffle reaction

Labour said the reshuffle was prompted by last week's election results.

"This reshuffle shows the panic and disarray in the Tory party after their disastrous election campaign," said party chairman Ian McCartney.

"This caps off a month of opportunism and lack of judgement from Michael Howard.

"The Tory campaign has seen them falling apart on Europe, revealing plans for up to £150 billion of cuts in public spending, and letting slip they are considering resurrecting elements of the poll tax .

"Now Michael Howard must order his new shadow health and education secretaries to come clean about where the cuts will fall.

"How many nurses and teachers would be sacked as the Tories take billions from the schools and hospitals for all to subsidise private health and education for the few?"

And the Liberal Democrats also said the move was a sign of panic.

"Michael Howard has today suffered a double humiliation," said party chairman Matthew Taylor.

"Not content with leading his party to its worst election result since 1832, he's also having to admit his downsized shadow cabinet wasn't up to the job.

"Howard's panic reshuffle won't restore Tory fortunes. No matter how often the Tories rearrange the deck-chairs on the Titanic, their poll results demonstrate they are on course for yet another record general election defeat, despite Labour's unpopularity."

But Conservative chairman Dr Liam Fox said the party was in a position to take its public service policies forward.

"Last weeks elections showed clearly that the British public are deeply disillusioned with Tony Blair’s government and looking for an alternative," he said.

"The only credible alternative to Labour is a Conservative government.

"After seven years of being let down by labour, the public rightly expect coherent and workable ideas from the Conservative Party.

"Our refreshed shadow cabinet team will bring forward over the coming months details of our alternative policies for the public services and for making life better for patients and pupils."