Twigg lost his seat in Enfield in 2005 but was relected to the Liverpool West Derby seat in May 2010.
Twigg was made minister of state for school standards in 2004 until he lost his seat in 2005.
Announcing the shadow cabinet reshuffle, Miliband said: "Families across Britain are worried about how they will make ends meet, anxious about what the future holds for their children and tired of the way irresponsibility is tolerated across our society.
"My decision to appoint half-a-dozen members of the 2010 intake shows the talent that Labour has and the way in which this new generation can join us in taking Labour’s agenda forward.
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