I think you hit the nail on the head there Ded. Give it a go for a month and report back to us.
I think a lot more people I going for these SIM only contracts now and that's what I'll be opting for when my contracts up towards the end of the year.
I see Carphone Warehouse are promising to be 10% cheaper than the networks for the duration of SIM only contracts. I know that's only £1.20 to you but if anyone else is looking at 12 month contracts it might be worth bearing in mind.