Wanting to be based close to home is understandable, but it's unwise to base your career plans on one employer, even one as sought-after as Ryanair.
Trust me, by the time you've got the CPL/IR, you'll be prepared to go anywhere, do anything to get a first job. And that's when times are good. Tis the way of the industry I'm afraid.
As for Ryanair and/or Flybe's plans for 2013, you're a better man than me if you know anything about that – I'm lucky if I know what's going on next month. Regarding the degree, it won't do your application any harm, but nor is it a great advantage to a piloting career. However, a degree - particularly a marketable one such as engineering – is extremely useful as a back-up 'plan B' in case the flying does not work out for any reason.