Current approaches to embodied AI tend to learn policies from expert demonstrations. However, without a mechanism to evaluate the quality of demonstrated actions, they are limited to learning from optimal behaviour, or they risk replicating errors and inefficiencies. While reinforcement learning offers one alternative, the associated exploration typically results in sacrificing data efficiency. This work explores how agents trained with imitation learning can learn robust representations from both optimal and suboptimal demonstrations when given access to constructive language feedback as a means to contextualise different modes of behaviour. We directly provide language feedback embeddings as part of the input sequence into a Transformer-based policy, and optionally complement the traditional next action prediction objective with auxiliary self-supervised learning objectives for feedback prediction. We test our approach on a range of embodied Vision-and-Language tasks in our custom BabyAI-XGen environment and show significant improvements in agents' compositional generalisation abilities and robustness, suggesting that our data-efficient method allows models to successfully convert suboptimal behaviour into learning opportunities. Overall, our results suggest that language feedback is a competitive and intuitive alternative to intermediate scalar rewards for language-specified embodied tasks.