In a report examining the government's childcare policies, the cross-party committee of MPs said the Treasury's calculations are based on data from 2012 and 2013 and fail to account for the impact of the national living wage, pension auto-enrolment and rising business rates.
The committee warned that the gap between what government provided and the cost of delivering childcare was causing providers to shed qualified staff, increase child-to-staff ratios and restrict the times when parents can use their free hours.
"The government's own figures on how much it provides per hour to fund 30 hours free childcare are often misleading and out of date," committee chair Nicky Morgan, a former Education Secretary, said.
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