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Prudential has come under fire after one of its with profit funds returned a customer less than he paid in over 12 years.

The then Scottish Amicable Flexidowment plan was recommended to a client by Wiltshire-based IFAs Heather Moore & Edgecombe in May 1996.

It was set up for payments of £25 a month redeemable at any age up until 65 and the policyholder had paid £3700 by the end of September.

However, the life office last month revealed to Brian Pickering, managing director of Heather Moore & Edgecombe, that the fund currently has a surrender value of just £3,506.18.

Mr Pickering said: "The client would have been better off putting £25 a month in a tin box and decidedly better off had he put it into a deposit account.

"How can an organisation such as Prudential, which now has the Scottish Amicable funds under its wing, offer such a low return?"

Mr Pickering went on to say he had recommended "hundreds and hundreds" of clients take out Flexidowment plans from Scottish Amicable, which he claimed used to be "perfect for the 'family cash fund'", enabling holders to dip in to make large payments or leave to endow for retirement.

And he added he was "appalled and astounded at the surrender value of the plan" and called on Prudential to explain the return.

A spokesman for Prudential was unavailable for comment.