Standards in schools have slipped so low that GCSE maths now amounts to little more than "glorified numeracy" while even those with top grades at A-level are woefully ill-equipped to study maths and science at university.
A combination of the "modular" A-level system, which allows pupils to bypass certain fields such as calculus, and a "race to the bottom" between competing exam boards are driving the problem, the House of Lords report has said.
Many pupils are even applying to study scientific subjects such as engineering and chemistry at university despite dropping maths at 16, meaning they arrive without even a basic knowledge of key fields like mechanics and statistics.
Some seventy per cent of first-year undergraduates studying biology, 38 per cent reading chemistry and economics and 20 per cent on engineering courses in 2009 had not completed an A level in maths.
In their evidence to the committee, Vice Chancellors including Prof Sir Leszek Borysiewicz of Cambridge reported that many maths and science students had to be given "remedial" classes upon arrival at university.
Lord Willis of Knaresborough, chairman of the Lords science and technology select committee which commissioned the report, said he was "absolutely gobsmacked" by the figures.
The calibre of maths students and general school leavers is so dire that all pupils should now be required to study maths to some level after the age of 16, he added.
"If we are talking about a world-class system, where mathematics is the cornerstone of virtually every science programme, then it is really quite amazing that we have so few students who have studied maths, literally, beyond GCSE and often, not even with a grade A.
"Part of [the problem] is the modulisation of A level, whereby there is no interlinking between the different elements of maths, but it is also because there is a race to the bottom at A-level by exam boards competing with each other about the ease with which students can achieve their grades."
Prof Brian Cantor, Vice Chancellor of York University, told the committee: "We have to give maths remedial classes, often even to triple-A students."
Professor Sir Christopher Snowden, vice-chancellor of Surrey University, added: "I think that in pretty much every university the issues over maths skills apply.
"This has been an issue now for many years within universities, partly due to the increase in the breadth of maths that is studied at schools but with a lack of depth. In some cases, for example, there is a complete absence of calculus, which is an issue in many subjects."
Those wishing to study science, engineering or maths at university should be required to take a maths A-level, while those focusing on humanities subjects like English or classics should still study the subject to AS level, the committee said.
Pupils who leave school at 16 to enrol in apprenticeships or other educational programmes should take courses in maths appropriate to their vocation, for example a basic accounting course for people who may become self-employed, they added.
The report also recommended that universities shoulder some of the responsibility by introducing stricter entry criteria for science and maths degrees, making certain courses and key modules obligatory.
Lord Willis said: "When you have got the Vice Chancellor of Cambridge saying we have got young, bright, A* students coming in and we have to do remedial maths to get them to engage with engineering and physics, there is something seriously wrong with the system.
