Despite cyberattacks being one of the top four risks to UK national security for the past six years, there appears to have been no coordination across the public sector, according to the report by the Public Accounts Committee.
It said that ministers have also taken too long to consolidate the "alphabet soup" of agencies tasked with keeping the country safe.
Committee chair and Labour MP Meg Hillier said: "Government has a vital role to __play in cyber security across society but it needs to raise its game.
"Its approach to handling personal data breaches has been chaotic and does not inspire confidence in its ability to take swift, coordinated and effective action in the face of higher-threat attacks."
The report said reporting across Whitehall departments varied widely, with some reporting thousands of data breaches while others recorded none.
It warned that, without a "consistent approach" to dealing with security incidents, the Cabinet Office was "unable to make informed decisions about where to direct and prioritise its attention".
Ms Hillier added that, despite the growing threat, Britain ranks below Brazil, South Africa and China in keeping phones and laptops secure.
She said: "In this context it should concern us all that the Government is struggling to ensure its security profession has the skills it needs."
The warning comes amid increasing concerns about Russian cyberattacks, with the country accused of interfering with the US presidential election in November.
UK Defence Secretary Sir Michael Fallon has also said that Vladimir Putin's Russia is using cyberattacks to undermine democracy in the United States and Europe.
A National Cyber Security Centre spokesman said: "In the four months since becoming operational, the NCSC has transformed how the UK deals with cyber security by offering incident management capabilities, fostering technical innovation to help prevent attacks and providing real-time cyber threat information to 3,000 organisations from over 20 different industries.
"The UK faces a growing threat of cyberattacks and we share the committee's determination to make the UK as safe a place as possible to live and do business online."
A Cabinet Office spokesman said: "Our comprehensive and ambitious National Cyber Security Strategy, underpinned by £1.9bn of investment, sets out a range of measures to defend our people, businesses, and assets; deter and disrupt our adversaries; and develop capability and skills."
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