Lord Falconer, the former Lord Chancellor, is planning to sue Prime Minister Gordon Brown after being prevented from claiming a bigger pension than other former Cabinet ministers.
According to reports, Lord Falconer claims that he is entitled to a bigger pension because of his position.
If he takes legal action, it is believed this would be the first case of its kind to be brought against the Government.
Lord Falconer drew the standard salary for Cabinet members in the House of Lords when he became Lord Chancellor in 2003, despite being entitled to more than double the £104,386 salary.
The Cabinet Office says his pension entitlement should be £52,193 but Lord Falconer believes this figure should be doubled.
Gordon Brown has refused Lord Falconer’s request to double his pension and Lord Falconer is now preparing his case against the Government.