Ministers are considering alternatives to an inflation-linked rise to benefits, government sources have said.

Benefits are due to go up by 5.2% from next April, in line with September's inflation figures.

But the government is worried about the cost of such hikes and the impact on public opinion given the current low wage increases.

Deputy Prime Minister Nick Clegg said the government would "not balance the books on the backs of the poor".

He said "difficult decisions" would have to be taken, but he would not "provide a running commentary on decisions and debates which haven't even been held in government yet".

Sources would not say what other options were being considered instead of an inflation-linked rise. It is not thought that any change to the planned 5.2% rise in pensions is being considered.

The BBC News channel's chief political correspondent Norman Smith said one possible option could be raising benefits in line with the average inflation rate for the year, rather than the September figure.

The Financial Times is reporting that Chancellor George Osborne has asked officials for alternative models, including a rise in line with average earnings growth of about 2.5% or freezing some payments.

It is understood the government will have "resolved" the options by early December when the uprating of benefits is presented to Parliament.