The former Hull MP said there had been a "complete disregard" for the conditions of the stewards, who were forced to sleep in the cold under London Bridge in the early hours of Sunday morning during the jubilee celebrations.
The Labour peer warned the incident could set the tone for the treatment of workers during the Olympics. He said Home Secretary Theresa May should look at the conditions of employment by companies like Close Protection UK, who provided stewards during the weekend.
The unpaid labourers were brought in as part of the Government's Work Programme, under which unemployed jobseekers must take up placements in order to continue receiving benefits.
More top news
Council, police and faith leaders attended Leeds Makkah mosque prayers to demonstrate their support.
A crackdown on gang crime in an area of Sheffield has resulted in the seizure of a number of knives, baseball bats and Class A drugs.
The boy had been walking to the shops when the man grabbed him by the arm as he was crossing the road. The child struggled free and ran off.