When I took on my current job I was obliged to sign up to a golden
handcuffs arrangement (i.e. I have to pay if I leave within a certain amount of
time.) In hindsight this was a poor decision, but I needed to to take
the job when choices seemed limited, and it's easy to look back and
think how you'd do things differently.
Moving onwards, when I come to leave, what options do I have to
avoid/limit paying out?

I'm wondering what you are looking for in an answer.  You have signed
what you consider to be a legally binding contract and you are asking
how to avoid your obligations in this contract.  I don't understand
when people sign contracts and then think the terms are optional.

You signed the agreement.  You have to live with the agreement.  I
assume that you received some sort of benefit when you took the job
(relocation, education, bonus, equipment).  The company wants a
minimum amount of work out of you in consideration for that benefit. 
If you don't want to do the work, then they want their money back.

If you, for some reason, did not receive the full value of the
benefit, you can negotiate with your employer different terms to the
signed agreement.

Maybe the dissatisfaction is mutual.  I imagine that even if they fire
you the terms of the agreement require you to still pay.

research_help-ga/philnj-ga

Yes, i agree with you both, i did sign the contract, and by doing so I
am obliged to pay up on leaving.

But, what I should have made more clear is the position was oversold
to me, leading me to believe that the work I would be doing was of a
higher standard than it has turned out to be (although in fairness I
have to say that this is my opinion, I imagine that if argued my
employer would deny this.)

The more unfortunate side of this is: after the annual review, my
pay-rise was disapointing. This means, that I am tied into a lower
than average paid position (for the type of work) with a fairly
predictable salary increase for the foreseeable future. This is
coupled with the problem that I feel that the work I am doing is not
improving my long term career opportunities. But if I leave (which I
may want to do for increased salary and/or better work) I will be
penalised quite stiffly.

Whilst I take my contractual obligations quite seriously, it feels to
me that I am in a position of little comeback. Maybe this time I have
to bite the bullet and put it down to experience.

Is the value of a better salary at another job worth more than the
penalty you would have to pay when you leave?

I'm curious.  Do these "Golden handcuffs" expire at some point?  Are
they expecting some number of years work from you? Can you confirm
that you received some sort of benefit when you took the job? Or did
you sign some sort of employment contract that covers a certain
period?

I'd compare the benefits and costs of staying with the costs and
benefits of leaving.  You might want to factor in non-monetary issues
as well.  I know you have already said that what you are doing does
not advance your career, but are there other benefits at your current
job other than salary?  Except for the cost of the penalty for leaving
your job, are there negative factors assoicated with getting another
job?  (longer commute, etc).

Hopefully, it will work out that in the long run, you will make out
better if you leave your job.

From you usage, it appears you someplace other

While honoring one?s commitments is clearly important, there are also
times when one signs a contract with onerous terms, simply because
there are mouths to feed, or one is inexperienced with contracts, or
one?s personal legal department is a little overmatched by the
corporation?s 20 full-time attorneys.   Corporations have a tremendous
advantage over an individual - the playing field is supposed to be
level, but it just plain isn?t.  I pray that those who wish to smite
the questioner with righteous wrath never find themselves in this
difficult dilemma.

But, in terms of the question, any meaningful answer will need to come
from someone with expertise in contacts and the laws that apply in
your locale.  Certain contract features are enforceable, others are
not (one cannot give away certain rights, even if the contract so
specifies, e.g., one cannot sell oneself into slavery).  If the
contract is fully enforceable in your location, then you can choose to
wait out the contract, or negotiate with your employer.  It may be
that with thoughtful review of your employer?s and your needs, you can
find a mutually satisfying way through this problem.  One possible
solution is separation, but even if you stay, there may some way to
change what you do to simultaneously provide your employer with
greater value, while at the same time increasing your job satisfaction
by allowing you to perform work at a level consistent with your desire
to do work of which you can be proud.

I wonder how hard it would be to fake your death?

So do they take the money out of your last paycheck?  If not, what if
you refuse to pay?