Seen the Carphone Warehouse thread but when I went instore they had sold out so just popped into the 3 store in Newcastle and picked up the ZTE F102 mobile on PAYG it is refurbished but I got it for £19.99 and you have to purchase £10 credit with it but they also give you an extra £10 credit and another 3 SIM.
The £10 vouchers are printed out and can be used for the same SIM if you want, giving you 180 days of free texts, 3 to 3 calls and internet allowance.
The guy said this can be done for any PAYG phones.
FREE Skype-to-Skype calls
2 Megapixel Camera
Pre installed with Skype & windows live
150 hours standby time
300 minutes talk time