I was hoping somebody else would answer this, because I know nothing about Sky, having never used them. I will leave Sky specific questions to someone else.
If you switch now and wish to keep a landline, you will have to transfer it to VoIP. It is no longer possible to order a copper based phone line*. VoIP could be provided either by your broadband supplier, if they offer some sort of digital voice product, or by a third party supplier such as Sipgate or Voipfone over your broadband-only connection.
You will need to connect your phone to your router, not to the BT terminal box. Depending on the relative locations of your kit, that may or may not be straightforward. If you take a voice product from your new broadband ISP, they may supply a router with a phone connector that your parents' existing phone can use. If you go with a third party supplier, you will need either to connect the phone(s) to the router via an "ATA" box such as the Grandstream HT801, or replace the handsets with digital ones that will connect directly to the router.
It should be possible to keep your existing phone number, provided that you do it correctly. It is also possible for this to go wrong and for the number to be irretrievably lost, so be sure that both you and your new ISP understand exactly what you want before you press any "go" buttons.
Whether VoIP is "better" depends on your criteria for better. It's a digital connection, so should be better quality. But unlike copper phones, VoIP is powered locally from your house mains supply, so if that (or the router) fails then so does the phone. If your parents rely on their phone for emergencies, they/you need to think carefully about that. If they have telecare devices that connect over the landline, these might need an upgrade to be VoIP compatible.
*edited to clarify that TT's network uses "full unbundling" unlike most other ISPs, who use LLU. This means they don't use BT's WLR for voice. As it is WLR that is being retired at end 2025, they are not bound by this deadline, nor by the Sep 23 copper stop-sell. But they are still transitioning customers to fibre/VoIP as fibre becomes available.
Edited by Thaumaturge (Sat 02-Dec-23 16:31:13)