Pembrokeshire County Council paid off a teacher and then helped to prosecute her for not telling them about the redundancy payout, a jury has heard.
Christine Page, aged 54, had been working as a supply teacher at Penally VC School At the same time she had been claiming housing benefit and council tax relief.
Swansea crown court was told that in January, 2007, the county council made her redundant and sent her £5,249, representing redundancy compensation and outstanding salary.
But at the same time the authority was acting for the Department for Work and Pensions – and prosecuted her for not declaring the payment.
Bob Hawkins, prosecuting, said Page, from Tenby, went on to work at the Five Arches pub in Tenby and then the Kiln Park holiday complex, but continued to claim benefits without declaring her earnings.
Page denied failing to notify the authority that her circumstances had changed and receiving a total of £6,332 in housing benefit and £528 in council tax relief, to which she had not been entitled.
The jury was told that Page accepted that she should have written to the council telling them about her employment but she said she had contacted them four times, in person or by telephone, and so had not acted dishonestly.
That, Mr Hawkins said, was the central question for the jury.
Mr Hawkins said Page maintained that as the £5,249 had come from the county council they must have been aware she had received it.
But Karen Ann Evans, representing the branch of the authority acting for the DWP, said they did not have access to the council’s payroll.
Page was found guilty of three offences and will be sentenced after probation reports.
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