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
Ex-Spitfire pilot Allan Scott, 94, said he was told off by the Queen when he first met her in 1943 when she was just 16.
Last minute preparations are going on at the Church of St Mary Magdalene where Princess Charlotte will be christened.
Princess Charlotte is being christened on Sunday at Sandringham in Norfolk in only her second public appearance since she was born.