allowance

EasyJet’s general manager in Portugal has issued a warning over new government proposals the carrier says will artificially inflate prices

easyJet is weighing up plans to cut back operations in Portugal, according to reports emerging from the country. The airline’s general manager there has issued the warning amid a dispute over government proposals which easyJet claims will drive up costs for passengers.

José Lopes, easyJet’s general manager in Portugal, announced on Monday that the carrier may cut back its domestic services following the scrapping of caps on something called the social mobility allowance for air travel. This caps maximum fares for some local passengers – but the changes are set to affect the airline more widely.

“Removing the upper limit will artificially inflate prices,” José Lopes said. He argued that the measure will deliver “zero benefits” for island residents while helping to deter tourists, who makeup the bulk of passengers on domestic routes.

The airline says it will not return to operate Azores routes due to the changes. It had already confirmed its departure from the region from March 29, 2026, blaming a 35 per cent increase in airport fees and what it describes as government inaction.

The easyJet representative was addressing journalists at a press conference in Funchal, held in partnership with the Regional Secretariat for Tourism, to outline the company’s operations and long-term pledges in the Madeira archipelago, SIC Noticias reports. Portuguese media outlets report that at Porto Santo airport, the two existing routes to Lisbon and Porto will be retained, albeit with a reduction to Lisbon owing to constraints at that airport, he indicated.

He warned that if the measure to alter the social mobility subsidy regime – which would remove the maximum limits for air travel for residents of Madeira and the Azores – is implemented, there will be implications for Easyjet’s operations. “I hope that an analysis will be carried out and a way will be found to be more rational and less emotional in dealing with the matter,” he said.

When asked about the possibility of abandoning the route to Madeira, the official ruled out this scenario. Yet reports say he highlighted the possibility of “a reduction in market capacity.”

The changes were given the green light on Friday in the Assembly of the Republic, but have yet to come into force. The amendments stem from two initiatives to revise the legislation put forward by the Socialist Party and Chega.

What is the social mobility subsidy?

The social mobility subsidy set a maximum fare of €79 for residents and €59 for students travelling between Madeira and the mainland (round trip), with an overall cap of €400. In the Azores, residents travelling to the mainland pay no more than €119, while students are capped at €89, with a recently introduced maximum ceiling of €600.

The Portugal Post reports that Portugal Parliament’s recent decision to abolish price caps has placed island connectivity under serious threat, with easyJet warning of capacity reductions to Madeira and confirming it will not operate Azores routes under the new framework.

Ryanair has also revealed plans to cease all operations in the Azores on March 29, 2026, citing cost pressures.

BBC Morning Live expert Laura Pomfret has highlighted the top six easy access ISA accounts as savers face the ‘last chance’ to use the full tax-free allowance

A BBC finance expert has outlined which ISA accounts people should be considering as a ‘fresh start’ gets underway. With the new financial year having kicked off on 6 April, savers have the opportunity to make use of cash ISA accounts for up to £20,000 of tax-free savings — and crucially, it’s the final year before this allowance is reduced.

Appearing on BBC Morning Live, finance expert Laura Pomfret explained what people should be doing and highlighted which accounts are currently offering the most competitive interest rates.

She said: “It is a fresh start and there’s an opportunity to make the most of your money and we’re going to start with cash is because the ISA limit resets every year and we’ve got £20,000 per person that we can utilize within cash ISA, stocks and shares is lifetime is a little bit different, but it’s a way of growing your savings tax-free because you know saving is a really good thing and you do make interest on it but if it’s outside of an ISA you will have to pay tax on that interest.”

Those with savings held outside of ISAs remain liable for tax. Ms Pomfret further explained: “Most people get a personal savings allowance per year so if you’re a basic rate taxpayer you can earn £1,000 outside of an ISA tax free it drops to £500 when you are a higher rate taxpayer but basically this is why we should use our ISA allowance first because you can put £20,000 in and not have to worry about any interest that you make you don’t have to pay tax on it.”

Those with ISAs are set to face a significant change from 7th April 2027. She explained: “This is the last tax year before the allowance for a cash ISA drops to £12,000. So this is the last year that you get £20,000 that you can put into a cash ISA, and then going forward from 6th of April next year, 2027, it drops to £12,000, apart from if you’re 65 or over, you can save into a cash ISA, and you get the other allowance. So it’s important to maximise that this year while you can.”

Host Helen Skelton asked: “If you are in a position that you can save money, where should you put it right now?”

According to the BBC expert, there are six accounts worth considering for ‘easy access’ savings. She stated: “Easy access is where you can get it in and out usually without penalty, but you can have a look at the terms and conditions and these are some of the best. So, first up, we’ve got Trading 212 with a 4.6% interest rate.”

“It drops after the first year. Now, to be clear, that is an investment platform as well, but they do have a cash ISA that you can use, and they’ve got a 4.6%. You’ve then got, for example, Virgin Money with a 4.15%. You are limited to two withdrawals per year on that. So, it’s classed as an easy access, but there are some limits to withdrawals.

“So, Bank of Ireland UK 4.06%. The rate drops after a year with that one. It’s like a you know in a new rate, and then interest is paid annually. Leeds Building Society of 4.05%. You have to pay in a minimum of £1,000 to get that one. Um, Yorkshire Building Society, 4.05%, withdraw as often as you want. And then Tesco Bank, for example, 4.02%, the rate drops after a year. With that one, you can do it over the phone. The rest are all online or using the app. But these are just examples. These rates change quickly.”

Top ISA easy access accounts highlighted

• Trading 212 4.6%
• Virgin Money 4.15%
• Bank of Ireland UK 4.06%
• Leeds Building Society 4.05%
• Yorkshire Building Society 4.05%
• Tesco Bank 4.02%

She explained that, generally, individuals should check comparison websites for terms and conditions, with at least 4% interest being the crucial figure.

She continued: “You may get higher if you go for a fixed, but this is where your money can be fixed and locked away for one, two, three years. So this is about choosing what’s right for you.

“If you can afford to put some away and not need access to it, you might beat that rate with a fixed one. And obviously, as I said earlier, there’s also stocks and shares is you could look at a lifetime is if you fit the criteria, but ultimately getting it in tax wrapper is a great thing to do so that you can you know grow your interest tax-free.”

Ryanair and easyJet have similar rules

Jetting off overseas is often an exciting time, with the promise of fresh surroundings and experiencing a different culture. But as the cost of living crisis rolls out, many Brits are finding it increasingly difficult to locate a getaway that won’t drain their finances.

Depending on your flexibility with dates, bargain flight offers do occasionally crop up. However, you’ll frequently face substantial charges if you want to bring anything beyond a compact carry-on bag. And there are also restrictions on the amount of luggage you’re permitted to take.

It might also be that while one person in your party travels light, others decidedly don’t. In such situations, you may want to ‘share’ your baggage allowance – by allowing another passenger to use some of yours. But is this actually allowed?

Ryanair and easyJet have clarified their policies regarding passengers sharing baggage allowances with fellow travellers in their party. Ryanair said on its website: “Bag pooling is allowed between passengers with check-in bags on the same flight reservation.

“This means that if you have two 20kg Check-in Bags (40kg total) on your booking, one of those bags could weigh 15kg whilst the other weighs 25kg. However, no bag can weigh more than 32kg.”

easyJet adopts a similar approach, as its guidelines state: “If you’re travelling with family or friends on the same flight and booking, you can pool your total weight allowance. This means that the total weight allowance can be split among the total number of bags booked, as long as no single item weighs more than 32kg. Maximum total size (length + width + height) = under 275cm.”

Ryanair customers who have opted for a basic fare are permitted to bring a small bag at no additional cost. The bag must fit under the seat in front of you and not exceed dimensions of 40 x 30 x 20 cm.

Larger bags can set you back anywhere between £12 and £80.99 per flight, depending on the size and the chosen route. It’s always more cost-effective to book these online rather than at the airport.

easyJet allows all passengers to bring one small under-seat cabin bag on board free of charge. This must not exceed dimensions of 45 x 36 x 20 cm, including any wheels or handles.

The cost for larger bags varies, but as with Ryanair, it’s always cheaper to add these online rather than at the airport.