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
Ministers agree £7.8 billion bailout deal for recession-hit Greece after an 11-hour Brussels meeting.
There will be outbreaks of rain in central parts of the UK, while the rest of the country will remain dry.
A heartwarming photo of a five-month-old gorilla meeting a two-year-old girl is taking Facebook by storm.