There is certainly no problem with Vodafone, as I have been doing this for years. As soon as my wifes contract runs out we renew with a new handset, and I use her old one with my Pay-as you-go sim card.
I dont see why there would be a problem with other networks.
The only problem would be if the phone was locked to a network, and uou were trying to use a different networks card.
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