Budget Android goodness here, with the ZTE Blade III. It’s currently going for £79.99 at Virgin, which includes a lovely £10 of credit.
ZTE Blade III specs include a 4in display (800 x 480), 1GHz single-core processor, 512MB of RAM, and a 5MP rear camera.
Delivery is £7.99, making the checkout price £87.98.
(Thanks to Gazbert at HUKD)