Meanwhile Mr Khan, the shadow justice secretary, said the plan "does not address the problem of unreformed offenders who have completed their sentence being released to commit crime and inflict harm on the public".
Labour shadow Treasury minister Chris Leslie said the plan did not go far enough.
Shadow defence minister Gemma Doyle said the plan could only work if the government worked with employers and suggested considering anti-discrimination legislation for reservists to help them combine working life with a career in the reserves.
"Instead of internal squabbling about Europe the government should be taking the lead in Europe on urging a global plan for growth, " said shadow Europe minister Wayne David.
Shadow chancellor Ed Balls attacked the government over its plan to cut the 50p rate of income tax to 45p from 2013.
Winding up for Labour, shadow business minister Gordon Marsden drew attention to Labour's five point plan for jobs and growth.
"We will only tackle the housing crisis and help first time buyers if we have a major programme of affordable house building, which Labour called for as part of our jobs and growth plan but the Budget totally failed to deliver, " said shadow Treasury minister Cathy Jamieson.
BBC: George Osborne warned by MPs over mortgage guarantee risks
Shadow chancellor Ed Balls replied for Labour, who say the government's plan to balance the budget mostly by sharp cuts in spending is not working.
Shadow social security spokesman David Willetts told the meeting that while the Tories' plan to roll together various existing benefits and abolish the new deal for lone parents in order to give pensioners a straight increase had great virtue in its simplicity.
But Labour's shadow chief secretary to the Treasury, Rachel Reeves, said the government's economic plan was "hurting but not working".
The shadow minister called for capital investment in schools "as set out in Labour's plan for jobs" to be brought forward.
Labour's Shadow Secretary of State, Vernon Coaker, said Northern Ireland's economy "needs a Plan B".
For Labour, shadow work and pensions secretary Liam Byrne called it a "very hazy and half-baked plan from the prime minister, when what we really need is a serious back-to-work programme".
Shadow defence secretary Jim Murphy accused the government of lacking a coherent strategy, arguing that there was "a plan for cutting the Army but not for boosting the reservists".
During debate on the Constitutional Reform and Governance Bill on 26 January 2010, Mr Tyrie's plan to create "term peers" was backed by the Tories and the Liberal Democrats, with shadow justice minister Eleanor Laing saying the idea was "helpful and illuminating".
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