The committee's findings are not binding on May's government who have said the status of EU nationals in Britain will be given priority once Brexit talks start with Brussels.
Last week, members of the unelected House of Lords agreed by a large majority an amendment to the parliament bill introduced by May to trigger the Brexit process. The amendment aims to guarantee the status of Europeans living in Britain, but it is expected to be dropped next week when the bill returns for a final decision to the House of Commons.
The committee report also called for an overhaul of the process for EU nationals in Britain applying for a permanent right to remain. It said the 85-page application form is not fit for purpose.
Committee chair Benn said: "We were told that at pre-referendum rates of processing, giving residence documents to all potentially eligible applicants using the current system would take the equivalent of 140 years."
The committee has also called on the government to set out how it will establish a new system for immigration to be in place within two years of triggering the Article 50 exit process, and what the rules for EU migrants will be once free movement ends.
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