Any modern inkjet printer is capable of producing decent quality photos using standard inks.
However, for decent results, you shouldn't skimp on the paper. The stuff that most supermarkets sell is usually rubbish. Look for some good quality paper from Kodak, or similar. (Kodak's 'everyday' paper is better than most supermarket photo papers but their top-quality stuff - such as Kodak Ultima - is well worth the extra money). If you do buy supermarket photo paper, avoid Morrison's (pathetic quality) stuff; buy Tesco's 'Finest' brand instead.
Most photo papers come with a leaflet telling you the best settings to use on your printer. It's well worth reading that leaflet, as the 'obvious' printer settings aren't always the ones that you actually need to use for a particular brand of paper.
Chris