IPhone 4 '5.0.1' HORRIBLE battery life!

Hey guys, i have an iphone 4, and up until about two weeks ago, i never had any battery problems.
I did a factory reset to try and increase my speed as i had noticed that my phone had been getting slower.
When i reset, i just happened to upgrade to '5.0.1' at the same time.
When i took it off, i was suprised to notice that my phone was losing battery at a ridicolous speed (almost 20% per 30mins)!
Also, the phone will randomly switch off and then come up with the 'Need Charging' Icon. When i plug my phone in, it will instantly turn on and go back to the battery percentage that it shut off at.
Another thing i noticed, is when i shut it off manually, and do a hard reset, my battery percentage will jump back up!
This is highly frustrating as it shuts off all the time!
Im not sure wether this is a software or hardware problem? I rang apple and they said the problem is my battery and i have to pay £80 for a new one!
Anyone else experiencing the same problems?
Cheers,
          Jonny

There are dozens of threads on battery life. No need to create (2) more. Start by using the More Like This box to the right. You can also use the Search discussions box above it.
Best of luck.

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