Morgan, until now Financial Secretary to the Treasury and Minister for Women, had her promotion broadcast on the Prime Minister's Twitter account. Gove has been nominated as Tory chief whip.
Morgan was first elected in 2010 and has climbed swiftly through the ranks of the Conservative Party. In addition to her new role, she will continue as Minister for Women and Equalities.
Gove has been a controversial figure throughout his tenure as Education Secretary, and BBC political editor Nick Robinson has said that many will view his new post as a demotion, as he is no longer a full cabinet member: "He now continues not as a leading Tory figure in his own right but as 'a friend of David and George.'"
Ofsted chief Sir Michael Wilshaw said he was "surprised and shocked" by the news: "I'm a great admirer of the Secretary of State, I think he's been a transformative and radical minister of education."
The government has announced the locations of 19 new Technical Excellence Colleges, backed by £175 million investment in skills training in priority areas.
New research suggests that eight out of 10 people (80%) back banning cars in streets around schools to encourage children to travel by healthier alternatives.
The government is proposing that schools appoint a lead governor with designated responsibility for school food, as part of its reforms to school food standards.
The government has set out plans to reform School Food Standards - the first time in over a decade - and is launching a nine-week consultation on the changes.
The government is launching a new programme to support schools in areas of high knife crime and improve pupils’ safety on their way to and from school.