Defunct department's duties to be shared with DTI

The Government's decision to mix employment and education portfolios has met with a cool reception

The spoils of the old employment department are to be shared primarily between the new DFEE and the Department of Trade and Industry.

The new department will take charge of the employment service and the careers service, youth and adult training policies, the Jobseeker's Allowance, training and enterprise councils, European social policies and programmes including the European Social Fund, the coordination of women's issues across government and the Equal Opportunities Commission.

The DTI will be responsible for industrial relations policy and legislation, pay issues, redundancy payments, work permits and sponsorship of industrial tribunals. Additional functions will be transferred to the department of the environment and the central statistical office.

Only one minister from the old employment department, James Paice, is transferring to the new DFEE.

Other ministers on the move - besides Michael Portillo - are Ann Widdecombe, who becomes a minister of state at the Home Office, and Phillip Oppenheim, who becomes under-secretary of state at the DTI.

Most civil servants have yet to be moved, and there is speculation about the future of the research unit at Moorfoot in Sheffield.