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You can set it to automatically upload but I don't know if it automatically deletes the local file.
Personally I like having all my pictures on my phone so I have an alternative method for creating space. Every so often I'll copy all my photos to my computer and run them through the batch conversion on Irfanview to reduce resolution and jpg quality. This generally results in files that are about 10% of the original size (all originals are stored online) which I copy over the existing files on my phone to recover the space.
How does that work with photos, videos etc though? Do you need to do it manually or will the photos app automatically offload stuff there as well?