Powell, previously a shadow minister for education, takes on Dugher’s old role as shadow Cabinet Office minister and vice chair of the election campaign.
Powell was formerly chief of staff for Labour leader Ed Miliband, and only became an MP in 2012.
With six months to the general election, Powell said in a BBC report on the moves: "I am going to get Ed Miliband out there more because he is a fantastic asset out in the country meeting people directly and talking to people directly, not seeing things through the prism of the media down here [in London], who do not always give him the best ride."
Miliband’s mini-reshuffle was triggered by the resignation of shadow international development secretary Jim Murphy, who stepped down from the Labour front bench to fight for party leadership in Scotland – but Murphy’s departure has given the party leader an opportunity to shake up an election strategy team universally seen to be failing.
Meanwhile, Mary Creagh moves from shadow secretary of state for Transport to fill Murphy’s position of shadow international development secretary. And Michael Dugher, who held the shadow Cabinet office minister and vice chair of the election role, moves to the post of shadow secretary of state for transport.