The Liverpudlian builder - who won the first series of the reality series back in 2000 - took part in a shed-building task with the housemates, before telling them they had to choose someone to be evicted that evening.
The group competed against Craig in a task to see if they could beat him in constructing an outside building - but he was much faster.
After the challenge was over, he told housemates to decide which two people had contributed least to the task - with Brian and Chantelle nominating themselves.
However, they were then told by the former winner that they must decide between them who would be evicted from the show.
He said: "Between you guys, you've got to pick one of these guys to leave the house tonight and I'm going to take their place."
But as the pair began to panic, he admitted he was joking and laughed: "I've got to come in and stir it up a little bit!"
Meanwhile, it has emerged 'Big Brother', which ended last week moments before the 'Ultimate Big Brother' series began, has been voted the worst TV show in British history.
The TV Nation poll, taken by 2,000 adults, saw the Channel 4 reality show rated the least favourite of all time, while car programme 'Top Gear' was named the favourite.