A WOMAN who banked £40,000 after selling the family home went on to falsely claim over £10,000 in housing and council tax benefit.

Hyndburn magistrates heard that Lorraine Snowden, 58, claimed she had only £5,000 in the bank when in fact she had just deposited £20,000 into a high interest account.

And the court heard that as a result Snowden received an overpayment of £10,259 after separating from her husband.

Snowden, of Chestnut Grove, Fern Gore, Accrington, pleaded guilty to allowing false inform-ation to be furnished to obtain benefit.

She was given a six-month supervision order and ordered to pay £100 costs. Gordon McMillan, prosecuting for Hyndburn Council, said that as a result of her deposits Snowden had received £900 interest in one year.

Scott Parker, defending, said Snowden had split from her husband in 2001 and she received £40,000 from the sale of their house.

At that time she cancelled her benefit claims and spent money on the council house she was renting. She also bought a car. When that one was vandalised she bought another.

She eventually put £20,000 into a high interest account leaving her with about £5,000 in her current account.

"She then made her application for council and housing benefits and she thought no more about it until the investigation began," said Mr Parker "The rest of the money has now gone and she actually has rent arrears. She knows she has to pay this money back and it's going to take her an awful long time."