Benefits cheat writes cheque to walk free after setting fire to £20,000 in garden

But 61-year-old Graham Woodward's bizarre attempt to cover his tracks utterly failed when a judge ordered him to hand over his remaining savings to escape jail.

In a highly unusual move, the fraudster took out his chequebook in the dock at Sheffield Crown Court and made out a £15,500 payment to the Department for Work and Pensions.

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It was handed to the prosecuting barrister and Woodward walked free when he was given a nine-month prison sentence suspended for 18 months.

Judge Trevor Barber told Woodward: "It is a sad day when somebody of your age appears in court accused of out-and-out dishonesty."

He said the chequehad saved him from a 12-month prison term and warned that if it bounced he would be locked up.

Woodward's case had been adjourned from a previous hearing while investigations were made as to how much he had in savings.

His barrister James Baird said Woodward had £15,865.98 in a bank account and was due to pay £200 gas and electricity bills out of that by direct debit yesterday.

The judge then made the order that the benefits cheat pay £15,500 immediately, leaving him almost penniless.

The court heard how Woodward had £26,558.11 in six bank accounts but claimed Job Seekers' Allowance and council tax benefit for six years from May 2000 to February 2006.

When investigators caught up with him he eventually admitted that he had withdrawn £20,000 from the stash two days earlier and burnt it in his garden.

Woodward failed to declare his savings when he first applied for Job Seekers' Allowance. He had what he called a nest-egg then of £15,120 in a building society and £3,000 in a bank account.

When first interviewed Woodward claimed he believed he was allowed to have up to £60,000 in the bank while claiming benefits - in fact the limit is £8,000.

He admitted burning the cash in a second interview.

In all, he claimed benefits for 200 weeks to which he was not entitled. Woodward, of Sharrow Vale, Sheffield, admitted making false representations while making benefits claims and fraudulently claiming £24,995.

Mr Baird said Woodward now had £15,865.98 in another bank account and would write out a cheque for some of the compensation to avoid going to jail.

"That is a substantial part repayment of the amount due and I understand the prosecution intends to pursue the balance," added Mr Baird.

Woodward said he had gathered his nest-egg through an endowment policy and took the view "it was his money".

A confiscation hearing will take place in April to assess how the rest of the compensation will be paid.

The judge also made Woodward subject to a curfew between 7pm and 7am.