Councillors are allowed to claim a basic allowance and expenses (usually mileage for attending meetings) for carrying out their role. Some roles, such as Leader or Chairman of the Council, have an extra allowance called a Special Responsibility Allowance, which is paid to reflect the amount of work the role requires. National Insurance and Tax is deducted from the amounts paid.
An independent group of people meet roughly once a year, to discuss the allowance amounts. They prepare a report for full Council, which the Councillors vote on.
The allowance scheme gives details of what Councillors are allowed to claim expenses for.