I use skype if I need to phone the UK. I pay the credit from a UK bank in £s, I called the UK last night from here in the Philippines and 20 mins cost me 41 pence. But call anyone in the Philippines its the international rate.
I think we pay about 20 Quid a year for 75 minutes of UK landline calls a month..
No idea why it cost so much more to call locally?