A BENEFITS cheat narrowly escaped a prison sentence after pleading guilty to making false statements for housing and council tax benefits causing a £6,000 overpayment.

Worcester magistrates dubbed the case of Alan Mountford, aged 64, of Rodborough Drive, Warndon, "very, very serious".

But they opted for a community punishment order over a custodial sentence because of the defendant's ''full and frank admission'', and his voluntary offer to repay £4,867.41 overpaid housing benefit and £1,096.54 council tax benefit.

They had earlier heard city council benefits fraud investigators had become suspicious of the single man's claims as a result of data supplied by the Audit Commission National Fraud Initiative, a bi-annual data matching exercise which cross-references benefit claims against local government payroll records.

A comparison match of records held by Worcester City Council and Worcestershire County Council indicated that Worcestershire County Council had paid him a salary from about October 2, 2000, and subsequent enquiries established that Mountford had been employed by Worcestershire County Council from that time as an escort/driver.

Further investigation revealed that he was paid on contract to work 25 hours per week and that his net earnings fluctuated between £264 and £625 per month.

At a meeting with benefits investigators he immediately admitted that he had acted dishonestly by stating that his only income at that time was a pension from a previous employer.

Prosecuting for the city council, Wendy Rushton said council officers have a duty to detect and prevent fraud and that the local authority is under a duty to protect the funds it administers, in this case Housing benefit and council tax benefit.

Sentencing him to 200 hours community service and awarding full costs of £349 to the city council, magistrates said they had taken into account the defendant's admission of guilt ''at the first opportunity'', as well as his voluntary offer to repay the overpaid amount.

After the case, Wendy Rushton commented that all benefits claimants should acknowledge they have a clear duty to inform the council of any changes to their circumstances at once and in writing.

Diane Phillips, benefits investigation manager for the city council, added that the department operateed a confidential Benefits Fraud Hotline which members of the public could use to report suspected fraud. The number is 01905 722212.