This is why people love Android. You can spend £500 on a Galaxy Nexus, or £99 on a T-Mobile Vivacity. Obviously the Viv isn't as powerful, but Android 2.3 on a 3.5" screen for £100 is "Black Friday" levels of cheapness.
You can get Android 2.3 for a little cheaper out there today, mind, with Huawei selling its Blaze through Phones4U in return for £90. But that's only got a 3.2" screen. The Vivacity comes with a 3.5" WVGA display and yes, it is capacitive. So it will actually be bearable to use on a daily basis.
T-Mobile's selling the Vivacity right now for £99 on a PAYG basis, or if you can wait a little while it'll soon appear on monthly tariffs from £10. [T-Mobile]