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Is it possible to convert my old (Ive upgraded) contract phone to pay as you go by sticking in a payg sim card?

Yes, just go and buy a PAYG sim card from your providers shop or elsewhere if cheaper and away you go. Some older Vodafone hansets are unlocked to all networks, but these days with security being tighter they aren't.

HTH

You should be able to get it unlocked somewhere easily as well if you want to use another providers payg sim card. If you don't know anywhere then just look in your local Freeads.

It should cost you under a tenner to do so.