I thought id let you all know about an offer i found at the local Orange store today. The previous best id heard was £35 a month which is not too shabby but it does get better!
Orange currently have a credit option for any old phone. And by any, the guy in the shop told me the phone literally needs to turn on, in other words, any phone will do (i plan to give them an age old Ericsson T310 ).
Anyhow the upshot is that it gives you £100 off the phone (though the catalogue im looking at suggests £150) which, on a £40 a month contract (for 18 months) changes the price paid to £34.45. They will do it on the £35 a month contract, reducing it to £29.45, though the phone will cost £39.99. I will ask them if they can rejiggle it so i get the phone for free and instead pay £32 or something, but i wont hold my breath!
Hope it helps