'Very pleased to come 4th and have beaten the @LibDems a long established party.' tweeted Fox.
Labour’s Keir Mather, 25, will become the youngest MP in the Commons after overturning a 20,137 majority in Selby & Ainsty.
Ministers were also paid more than £400,000 in severance packages.
The Tories held the seat with a majority of just 495, while Laurence Fox and Piers Corbyn couldn't even get 1,000 votes between them.
Sir Ed Davey is the first leader of any political party to win four by-elections since Paddy Ashdown.
The failure to overturn the Tory majority in the seat was dubbed “Uloss” by a party insider.
Sarah Dyke secured victory in the Somerset seat.
A similar swing across the country would result in Labour winning more seats than in Tony Blair’s 1997 landslide, the party has claimed.
Boris Johnson, Liz Truss, Kwasi Kwarteng and Michael Gove are among the senior figures who accepted severance payments after leaving office.
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