how much speed difference is there between the 2?
Using iMac for general use no pro apps or heavy photo/video work.
Will be a family computer
Lots of difference. I've been using SSD since 2007 and there's no way I'd ever go back to a standard HDD. SSD is not a scam, it does really make a real world difference even if you are just using the computer for 'family stuff'. The main speed difference that you will notice is how quickly your computer can find files, so just starting up and opening applications will be significantly quicker than any HDD - seek time of a HDD, ~30ms; seek time of an SSD 0.1ms. SSD's not only find your files quicker but they can read and write quicker too, typically 150MB/s for a HDD, over 500MB/s for a regular SSD, around 1GB/s for one of the newer SSD's.
Regardless of whatever anyone else's opinion is the maths don't lie. As for people saying there's no announced RPM for an SSD and this being dishonest, that's because SSD's don't contain a spinning disk for there to be an RPM! Show's how much some posters know!
HDD's have their place, mainly for keeping your data files as you typically don't need to access them as quickly as the operating system files. While they are slower they generally have higher capacities and cost less, and there's the decision you need to make. Fast, expensive (not that expensive really) with smaller capacity, vs high capacity, cheap and slow.
A common approach is to get an SSD as the main drive in your computer and then add a USB HDD for your files. If you can only have 1 however consider a fusion drive, this combines the two to increase the performance of a regular HDD, but without loading the price too much. It's a reasonable compromise.
If you are considering spending that much on a Mac, why not spend the extra £80 (or whatever it is in your currency) to make it perform properly. There is no point in 2015 buying a computer with a HDD as the main disk now the price of SSD's has come down so much.