The Health and Social Care Committee said the first 1,000 days were critical, but not enough was done.
It warned cuts to children's centres, health visiting and services to support parents had left families vulnerable.
Nearly a third of children are not "school ready" by the time they reach five, because they have not developed the necessary skills and behaviours.
The cross-party group wants the government to pay for extra contact with health visitors beyond the age of two-and-a-half.
The MPs pointed to the approach taken elsewhere in the UK - Scotland, Wales and Northern Ireland all fund more than the minimum of five visits provided in England.
Wales, in particular, was praised for its Flying Start programme which provides intensive support for the most disadvantaged families.
But the MPs also said there needed to be better support to tackle problems such as substance misuse, mental health problems and domestic abuse among parents.
Adverse experiences in childhood have been shown to increase the chances of poor health and development in later life.
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