Yes, Iain Duncan Smith keeps his job. The BBC seems not to have noticed this.
So why is he still there? Political Scrapbook has two theories: one is that they didn't want to justify the supposed leak of his demotion by a Spad on a train; and the other is that anyone else taking on the job would have to admit to the grave problems with UC, so best leave it alone. I have another theory - that he stays put because he's doing what Cameron wants him to do. Michael Gove went to great rejoicing in every school staffroom in the country; teachers vote, and some might vote Tory. IDS would have gone to exultation among the poorest - who never vote Tory.
Esther McVey keeps her job too (and a seat in the cabinet, which is meaningless) but Mike Penning has gone. He had shown far too much compassion for the disabled and contrition for the Atos mess. So there now isn't a minister for disabilities, but Mark Harper comes in as Minister of State at the DWP - not sure what that means. Harper is a youngish right-winger. That seem to be the main theme of this reshuffle. All the moderates have gone (I don't count Gove in that) and a firm right-wing stance is set for the rest of this government.
There are things to say about the bedroom tax report and about Capita, but we'll leave that till tomorrow.