Amber Rudd has profited to the cabinet as work and pensions secretary.
Ms Rudd, who replaces Esther McVey carry on her Brexit resignation, quit herself as home secretary in April among controversy over her handling of the Windrush controversy.
She admitted having “inadvertently deceived” MPs over immigration targets but a subsequent probe found she had been let down by officials.
But her office was met with outrage from Labour.
The party’s shadow cabinet service minister Jon Trickett said: “After enforcing Theresa May’s hostile situation in the Home Office, Amber Rudd will now be in charge of the DWP’s hostile territory for disabled people and the poorest in society.
“With universal credit in unrestricted shambles, appointing a disgraced former minister who was only recently feigned to resign for her role in another scandal is a desperate choice by a weak prime priest.”
Ms Rudd said she had seen universal credit “transform lives” in her Hastings and Rye constituency but she “recognised there had been some circulations with it”.
She said she would make it her role to to “iron out those difficulties and frame it a force wholly for good”.
Labour MP David Lammy said her selection so soon after the Windrush row was “wrong”.
The BBC’s Iain Watson said it was a tremendous job given the controversy surrounding universal credit, the government’s flagship good fortune reform.
He also said it showed Theresa May’s confidence that she could select one of her “allies” to such a key role given the turmoil over her leadership in the quondam 24 hours.
Ms Rudd’s return to government comes less than seven months after she obverse intense criticism over the UK’s treatment of the Windrush generation.
She apologised after it surfaced that some migrants from Commonwealth countries, who were stimulated to settle in the UK from the late 1940s to 1973, were being wrongly published illegal immigrants.
However, she continued to defend the hostile environment immigration procedure championed by Mrs May and quit after admitting to having inadvertently misled two formal committees on what she knew about targets for immigration removals.
A brand-new report found Home Office officials gave her the wrong data and then later failed to clear up the problem.
Ms Rudd becomes the sixth manipulate and pensions secretary since March 2016.
A Remain supporter during the 2016 referendum, Ms Rudd has specified her backing to Mrs May’s draft Brexit agreement, saying it is “not perfect but perfect was not in any way on offer”.
Her return to the ministerial ranks has been welcomed by colleagues, cataloguing Sajid Javid and Liz Truss.
The prime minister has also announced that Fettle Minister Stephen Barclay will replace Dominic Raab as Brexit Secretary, Conditions Secretary Michael Gove having reportedly turned down the job on Thursday.