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She can put it towards a bill credit if she moves to a contract sim or continue to use the same sim with the credit in a new phone.
I'm not aware of anyway to withdraw the credit for a new phone though, although you should check this with O2 on 4445.
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You used to be able to use the credit towards a new phone in the O2 stores
Of course they are closed right now so it's worth checking after lockdown is eased
