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Honestly, with that kind of budget, you would not even come close to buying either a decent DSLR body, nor the all-in-one zoom lens you would like with it. Even a T2i + Tamron 18-270mm F/3.5-6.3 Di II VC PZD would set you back for double your 500£ budget.
This leaves you the point and shoot cameras, of which I can recommend the Canon S100 if you use your camera in low light, or the Canon G12 if you want a larger zoom, and mostly shoot outside on bright sunny days. We have the Canon S90, the predecessor of the S95 then S100, and the biggest issue is it runs out of battery after around 100 exposures if you recharged it the same day, if not the battery does drain rather quickly. It's a great add-on to a DSLR, I like the wide angle f/2.0 lens, but I don't think I would be that satisfied if it were our main camera.
An alternative which I think could be interesting is the Fuji FinePix S4300. I had one of their older models, and it was very great. The best feature of the Fuji, though, is the 4x AA batteries it takes instead of those weird battery packs that are mega expensive. If your Fuji runs out of batteries, just plop AA batteries in, and you're good to go.
All of these cameras, and the entry-level DSLRs all have adequate auto modes, but to take the best pictures, I strongly suggest you learn more about photography and start using the Aperture Priority (AV) mode more often, it'll give you much more creative control on how the pictures comes out.
_________________ Cameras: Canon EOS Rebel T2i, Canon S90 Lenses: Tamron: SP70-300mm F/4-5.6 Di VC USD, Canon: EF-S 18-55mm f/3.5-5.6 IS Lens, 75-300mm f/4.0-5.6 III, and EF 50mm f/1.8 II Retired camera: Fujifilm Finepix s700
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