Does restoring or updating your iPhone free up space?

I have an 8gb iPhone 4 and I didn't update it to iOS 7 yet. Will that help free up any space or not?

No. Updates need some breathing room to move around and update stuff. About 2gb's for 7.1 and close to that for 7.0. To free up space you need to move/backup your phone using iTunes and/or iCloud. You get 5gb FREE with iCloud anyway. Unload old pics, apps, and stuff to iTunes to make space. ITunes will tell you on the bar at the bottom how much space you have. It will even tell you how much space you need to update on the main screen if you ask, or go through Settings on the phone. After you've offloaded stuff, then update, then put stuff back.
See 'other' in iTunes on that bar at the bottom. That's all the 'junk' on your phone. Txts, any data you've put in any app, blah blah. Takes up a lot of space.
No endorsement, and don't work there. I use this paid version.
http://www.imobie.com/...honeclean/

Happy cleaning, best luck.