Vodafone has announced a pay-as-you-go price plan that is capped at a £1 a day spend, yet allows you to text or call as much as you like.

Pay As You Go 1, as it is called, charges 20p per minute for calls, 20p for texts and 20p for each 5MB of data. However, as soon as you spend £1 you won't be charged any further fees. You can then use as much talktime or SMS texts as you like for the rest of the day. You also get up to 500MB of data to use.

If you want more data, you can buy extra, with each additional 500MB costing a further £1.

It's not really a plan for heavy video streaming or app downloads therefore, but could limit bills for those who struggle with monthly charges. And if you don't use your phone for a day, you won't be charged.

That way your bill - unless you want more data - will never exceed £31 a month. You can, of course, still receive calls for free even when you aren't spending money.

PAYG1 will be launching in early November in the UK. You should contact your local Vodafone shop for more details.