Government ministers will receive no pay rise, Gordon Brown has announced.
An above inflation rise in MPs' pay, recommended in a review, has also been rejected.
"Given the importance of public sector pay restraint at a time of economic uncertainty ministers will not be accepting any pay rise in 2008-09," Gordon Brown said.
Harriet Harman, the leader of the house of commons, is expected to make a statement of parliamentary pay and allowances later today.
Mr Brown's comments followed a report on senior salaries, released today.
It recommends a seven per cent pay bill for senior civil servants, an increase of 2.2 per cent for senior military officers and 2.5 per cent for almost all judicial salaries.
The news reflects nervousness in the government about politicians' pay following scandals over parliamentary allowances and a general tightening of belts across the country as the global economy plunges further downward