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"Families from lower socio-economic backgrounds are less likely to use the Early Years Free Entitlement," the report says.
Bright Blue says the free entitlement should be used in order to gain access to child benefit.
Dr Birgitta Rabe, from Essex University, said: "The case for extending the free entitlement (for all) is not as clear cut as the political rhetoric might suggest".
"In this context, it might be more appropriate to see the free entitlement as a form of child benefit, and the policy debate should reflect this".
Based on the FCT's own figures, our free entitlement will save the average eligible family £2,500 per year for each child".
The receipt of child benefit should also be conditional on parents using the early years free entitlement for their young children.
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"NHS free entitlements, such as continuing care, could be reduced or means-tested and hotel costs in hospital charged," he continued.
NHS free entitlements, such as continuing care, could be reduced or means-tested and hotel costs in hospital charged, as in France and Germany.
He added: "With the fully flexible Isa, people will have complete freedom to take money out and put it back in later in the year, without losing any of their tax-free entitlement".
From next month, people will be able to put up to £15,240 into an Isa, but the chancellor said that if someone takes that money out, "you lose your tax-free entitlement and so can't put it back in".
"If you take that money out, you lose your tax-free entitlement, and so can't put it back in," he said.
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CEO of Professional Science Editing for Scientists @ prosciediting.com