Good for you. These people aren't the ones who you'd like to work with anyway, very likely to be toxic clients.
>>> I've tried £50/hr, £40/hr, and now £20/hr
By lowering your requerements, you are attracting more slamming-the-phone clients. Stick to at the very least 50/hr (if I remember well, ~400/d is a common rate for contractors in North, e.g. Leeds). Raise it to 75/hr if you are not junior. It will take longer to get a gig, but it will pay off.
>>> This is in the NW of the UK
Damn, I miss Manchester :) sorry for getting carried away :)
>>> I'm likely not going to get paid anyway
Why wouldn't you? You are not a charity organization, you shouldn't be providing free work. You are providing a valuable service, so you should charge the appropriate rates. You don't owe anything to anyone.
Also, if you are willing to work cheap / for free, you will be treated poorly more often than not.
So raise your rates, be patient, don't let others take advantage of you and everything will be alright ;)
If I wanted to I could take contract work in Manchester and earn twice what I'm on now. But I don't want the 3 hour commute.
So you might say, "well that's your problem right there!" and I accept that. But I was thinking that I might be able to solve the problem I've specified without doing the obvious, "move to Manchester."
Get online to industry-related job boards and search for 'remote', 'anywhere', or 'telecommute' opportunities, especially in places where the cost of living is higher than yours.
I would check out Github's job board, AuthenticsJobs.com , and te Smashing !agasine job board. not the most glamorous places but I have found work!
Good luck, and charge your full rate, you are worth full price :)