A Conservative source said David Cameron had been "clear that we are committed to reducing the cost of politics" and that the Prime Minister had consistently called for "restraint" in MPs' pay.
Labour sources said MPs pay should be "considered in the light of the current economic climate".
We will obviously wait to see what the final proposals are, however, as we have always said, any rise in MPs' pay must be considered in the light of the current economic climate and the cost-of-living crisis facing people across the country.
It must also be seen in the context of the decision to limit or freeze many workers' pay increases in both the public and private sectors.
More top news
A 14-year-old boy has reportedly been arrested in Saudi Arabia after dancing the Macarena in the street.
Another American city is hit by political turmoil as police use tear gas to disperse protesters at a rally in Phoenix, Arizona.
Kim Wall, whose body had been cut apart, is believed to have died while on a privately built submarine belonging to a Danish inventor.