The UK government should now make a unilateral decision to safeguard the rights of the three million EU nationals living in the UK, the Exiting the EU Committee unanimously agreed in a report published on Sunday (5 March).
The cross-party group, chaired by Labour's Hilary Benn, includes former Vote Leave campaigners and Conservative MPs Dominic Raab and Michael Gove, the ex-justice secretary.
The MPs also called on the UK government to seek to ensure that the 1.2 million Britons living on the Continent do not lose their rights to healthcare and pensions after Brexit.
"EU nationals in the UK and UK nationals in the EU are aware of the forthcoming negotiations, but they do not want to be used as bargaining chips," Benn said.
"Although the government has said it wants EU citizens to be able to remain, this has not offered sufficient reassurance that the rights and status that they have enjoyed will be guaranteed. It should now
He added: "EU citizens who have come to live and work here have contributed enormously to the economic and cultural life of the UK. They have worked hard, paid their taxes, integrated, raised families and put down roots.
"They did not have a vote in the referendum, but the result has left them living under a cloud
"They are understandably concerned about their right to remain, and their future rights to access education and healthcare. Equally, Brits who live and work on the continent are worried about their right to work and access healthcare after Brexit.
"EU nationals in the UK and UK nationals in the EU are aware of the forthcoming negotiations, but they do not want to be used as bargaining chips.
"Although the government has said it wants EU citizens to be able to remain, this has not offered sufficient reassurance that the rights and status that they have enjoyed will be guaranteed. It should now do so."
The report is another Brexit-related blow for Theresa May after the House of Lords voted 358
to 256 in favour of an amendment to the government's Article 50 bill. The amendment, which
will now be voted on in the House of Commons, would unilaterally grant residency rights for the
The dispute over the bill could trigger legislative "ping pong" between the Lords and Commons and delay May from starting divorce talks with the EU, which the prime minister has promised to trigger by the end of March.
"We are disappointed the Lords have chosen to amend a Bill that the Commons passed without amendment," a spokesperson for the Department for Exiting the EU said.
"The Bill has a straightforward purpose – to enact the referendum result and allow the government to get on with the negotiations.
"Our position on EU nationals has repeatedly been made clear. We want to guarantee the rights of EU citizens who are already living in Britain, and the rights of British nationals living in other member states, as early as we can."