Tracey Lincoln (44) of St Mary’s Crescent, appeared at York Crown Court, where she admitted not telling the authorities her husband had deposited nearly £25,000 in her account following the death of his parents.

Claimants with more than £8,000 in savings are not entitled to the benefits received by Lincoln, who continued her claim for Income Support, Housing Benefit and Council Tax Benefit for nearly four years.

The court heard she admitted twice failing to notify her change in circumstances when questioned in April 2007.

Judge, Recorder Stephen Ashurst asked why it had taken so long for the case to get to court: “Almost routinely the Department for Work and Pensions (DWP) issue press releases after every sentence imposed, but fail to comment on the often very long delays between instigation and prosecution, during which time the defendant is kept waiting to hear whether they are going to go to prison or not.”

Recorder Ashurst asked what would happen if Lincoln had simply gone on holiday or bought a car with the money.

Prosecutor Patricia Doherty said she could not answer either question, but added it had been up to the defendant to inform the DWP and Scarborough Council of her change in circumstances.

Glen Parsons, in mitigation, said Lincoln was of previous good character, and the long wait for the case to come to court had been part of her punishment.

He said: “The inheritance was her husband’s and he transferred the money to her in the midst of two bereavements.

“It doesn’t seem they had the money for that long and they spent it on nothing extravagant, but improvements to their home. It may be they would have been entitled thereafter.”

The couple are currently paying off the money out of Mr Lincoln’s Job Seekers’ Allowance.

Recorder Ashurst said: “I’m quite convinced the whole process of being arrested and prosecuted and brought to court has had a serious impact, but you’ve brought this on yourself by simply failing to declare that you, through your husband, had come into some money.

“Everyone on benefits knows there are some limits beyond which benefits are stopped and the DWP need to work out fair amounts.

“You’d have saved a lot of heartache and difficulty if you and your husband had been honest in making your claims.”

The 12-month order includes 200 hours’ unpaid work. Lincoln was also ordered to pay £250 costs to the DWP and £147.80 to Scarborough Council.

Vernon Sanderson, regional fraud manager at the Department for Work and Pensions, said: “Benefit fraud stains the reputation of everyone who needs to claim benefits legitimately.

“That is why we are determined to clamp down on it and are working with local authorities and other government departments to stop it when it happens and prevent it in the first place.”