O2 has just announced that the 3G iPhone will be available on their Pay & Go tariff from the 16th of September 2008.
The 8GB version will cost you £349.99 and the 16GB version will cost you £399.99, although the prices seem steep, the 8G version is only £60 more than I paid for my 2G iPhone with an 18 month contract when they launched over here.
With the O2 3G iPhone PAYG package you will get 12 months of unlimited browsing and Wi-Fi for the first 12 months, after the first year it will cost you £10.
It looks like the only thing you wont get with the Pay & Go 3G iPhone is visual voice mail, and from the looks of the O2 Pay & Go contract you the minimum monthly top up is £10.
O2
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