It's part of his cabinet reshuffle where he moves around politicians and gives them different roles.
Focus on kids
This new job focusing on children will mean looking after issues which affect you like:
Margaret will be working with Charles Clarke, the man in charge of your education.
- Family issues
- Kids in care
Children's charities have wanted a special children's minister for a long time.
It gives them a single person to go to about issues they need help with.
Check out Newsround's Man in Parliament column on Tuesday for more on Margaret Hodge - including her school nickname!