Mr Prescott was joined by several other leading Yorkshire figures on the roll of honours, including former Bradford Council leader and chairman of the Local Government Association Dame Margaret Eaton, former MP for Sheffield Hallam Richard Allan and former MP for Harrogate and Knaresborough Phil Willis.
Bill O'Brien, who was MP for Normanton from 1983 to 2005, received a knighthood.
The honours include several dozen working peers nominated to represent each of the main parties, as well as a special Dissolution List to mark the end of the last parliament.
Altogether 56 new members of the Lords are being created.
Helen Newlove, who has campaigned against drink-related violence since her husband Garry was beaten to death by a gang in Warrington in 2007, is to become a Tory peer and children's TV presenter Floella Benjamin is being made a Liberal Democrat peer.
Mr Prescott said: "I welcome the opportunity to continue to campaign in Parliament for jobs, social justice and the environment as well as to hold this Con-Lib Government to account."
Many of those ennobled had senior positions in the previous Labour administration. They include ex-home secretary John Reid.
The Tory list includes ex-leader Michael Howard.