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Blackburn benefits claim man had £50k
3:12pm Thursday 31st October 2013 in News
A 63-YEAR-OLD man claiming benefits failed to notify the authorities when he received a £50,000 lump sum payment and a £160 a week pension.
Blackburn magistrates heard the omission meant John Loughney received £3,400 in income support and housing benefits he wasn’t entitled to.
But Damian Pickup, defending, said the £50,000 had only been in his client’s account a matter of days before he used it to set himself up in business.
Loughney, of Infirmary Street, Blackburn, pleaded guilty to failing to notify a change of circumstances. He was fined £300 with £105 costs.
Mr Pickup said Loughney had lost his job and made a legitimate claim for benefits. He decided to start his own business and decided to buy a franchise.
“He received this £50,000 lump sum and it was in his bank account only a matter of days,” said Mr Pickup.
He used most of it to buy the franchise and the remainder to for business equipment. He wasn’t making any money at first but he accepts he should have informed the authorities.”