Before 1 April each year, the Council agrees a scheme, which sets the categories and amounts of allowances that will be paid to councillors from 1 April until 31 March the following year. This is known as the Members' allowances scheme, which is set out in full in Part 6 of the Council's Constitution. When agreeing the scheme, the Council must consider the recommendations of an independent panel. Camden, like most other London boroughs, uses the Independent Panel on the Remuneration of Councillors in London. The main components of the scheme are set out below.

Basic allowance

Every councillor is entitled to receive a basic allowance for as long as they continue to serve as a councillor in recognition of their workloads and responsibilities, so that people are able to undertake the role of councillor without being subject to financial loss for doing so.

Special responsibility allowances

Certain roles in the Council carry additional work and responsibilities, such as being the leader of a political group, Cabinet Member or chair of a committee. In recognition of this, the councillors who hold those posts receive an additional allowance, which are collectively known as special responsibility allowances.

Other allowances

Councillors can also claim allowance to cover specific expenses as follows:

• Travel and subsistence allowance: to cover the costs of travel, accommodation and eating when attending meetings and events as a councillor outside of the borough.
• Cycle allowance: an allowance paid to all councillors who use a bicycle regularly for travel around the borough.
• Dependent carers' allowance: to cover the costs of care for the dependents of councillors, such as children, when they are attending meetings as councillors.
• Co-optees' allowances: people who are not elected councillors, but who attend meetings or hold roles to provide the Council with independent advice are also paid allowances or can claim reasonable expenses to cover their costs.