The previous owner of the Horseshoes tried to turn it into a country hotel. In the process his wife acquired her own webpage populated by aggrieved patrons who gave some of the most biting comments imaginable. It was made quite clear that walkers, cyclists, motorcyclists. locals, dogwalkers etc etc were not welcome and, consequently, he lost all his trade. The camping site was one of the earliest casualties.
The new owners are walker friendly and have created a heated patio for walkers to sit on if they wish to stay outside (the area outside around the flag is again available too). Sadly, the camp site is now a carpark.
The alternatives.
The Steads at Fairfield Farm have a camping field available. No facilities at all (no toilets washing facilities etc) Accessible from Farwath by a good track. Close to the Fox and Rabbit for meals.
There is a basic site (toilet and shower) behind High Horcum Farm
Accessible from the path down Dundale Griff turning right up the slant track before Low Horcum (£6 a night last year)
Marfitt Head has a full facility (in terms of a toilet and wash block) site half a mile further north west of the road. (£10 last year).
Hutton is far more problematic. The Stricklands have a site at Westfield Farm just south of the village, probably the best bet. Google it and see what you think.
Other than that you have a long detour to find a site around Hutton. There is a small caravan site behind the old garage. I have not seen tents on it, but it might just take you. I don't think it has any facilities but there is a pub and a loo in the village. The owner is called Woods. The local TIC based in the Rydale Folk Museum will give you his number if you call them.
Hope this helps.