British Airways crew could lose up to £5000 each a year as part of management plans to cap overseas allowances.

The carrier has long hoped to cut back on what is seen as a lucrative extra in the pay packets of 14,000 cabin crew.

The money is paid to remunerate staff while away from home and covers expenses such as food and laundry. Some long-haul crew can make up to £1000 a month in extra payments through the system.

BA now wants to create an annual bonus scheme and cap payments to £8000 a year for long-haul crew with short-haul crew getting a lower cap.