I am currently having a similar problem trying to get my step daughters British passport changed as i have now legally adopted her, so her surname has changed. I sent off the application with both British and Filipino passports with the adoption certificate. They sent back a similarly worded letter to Fred's saying a passport could not be issued as the surname on the Filipino passport did not match that on the application. They then offered to return my documents so i could get the Filipino passport changed to her new surname. After several phone calls and a formal request letter from me, the documents were returned........then several days later a letter from them informing me i had 6 weeks to return the corrected documents else my application would be destroyed and my fee NOT refunded......nice!
The problem is, in order to get her name changed on her Philippine passport, i first need to notify the embassy in London of her adoption, which of course has to be done in person. The embassy then send the application off to the Philippines to make an official change to the Birth certificate held by the NSO. Once I get the new revised NSO birth certificate, I can then apply to revise the Philippines passport.....which will enable me to apply for a revised British passport. In six weeks?????......i think not as it will probably take 3 visits to the Phil embassy in London and about 6 weeks to get the NSO birth certificate back!
The British passport office are currently processing my complaints about their helpline and documentation which tell you absolutely nothing about this before you submit your application. The post office check and send service is also part of my complaint having failed to notice the passport name problem and also insisting the application needed countersigning when all the documentation said it was not needed for a name change.
The complaints section recently responded to my last letter of complaint requesting details of when i phoned their helpline (probably thinking i wouldn't respond). Fortunately i was able to respond with the dates, times, duration and cost of 2 calls before i submitted my application and 1 call after receiving their refusal letter. They have now written again to inform me they are investigating my complaints. I have requested that they refund all my fees plus expenses as had i known beforehand, i wouldn't have made the application to change the British passport first and their helpline, PO check and send, and online documentation failed to provide correct information. Fortunately, i have my step daughters passport back so she is still able to go on her school trip in March. I will let you know the outcome of my complaint to them.