Rear Panniers... Advice please...

Hi there, going to be doing some treking around over the next few weeks, and have a question.... Panniers or Backpack?? Not much stuff to carry (change of clothes etc...) but does a pannier make a difference to ride quality/speed? Also, any advice of which ones to go for?? (Note... with a budget!!)... Thanks guys, all advice is much appreciated.
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In terms of reviews, I am of the school of thought that you should buy the best you can afford. I have ortlieb panniers and they are superb but are around £80. You can get cheaper but the quality tends to drop with the price.
Trax T700 with Lew Racing Pro VT-1 ;-)