Patricia Caley, 54, had already spent £120,000 in inheritance money and later began claiming benefits.
However, during that time she still had money in the bank and was receiving income from dog walking which she failed to declare to Treasury.
She appeared at the Court of General Gaol Delivery for sentencing on Thursday, April 30.
The court heard that Caley had £123,946 paid into her Halifax account from an inheritance in June 2020 but had since spent it.
She made false declarations that her circumstances had not changed on 172 occasions while receiving MiCard payments. She also received regular payments for dog walking of £95 per week.
When interviewed by social security inspectors, she said she believed she could work up to 16 hours a week without affecting her income support. However, she gave no explanation for failing to declare the bank account.
In mitigation, advocate Paul Rodgers told the court his client had no previous convictions and had a ‘complicated background’, including anxiety and depression. He said much of the money had been spent on alcohol.
Deemster Cook said Caley had lived an ‘extravagant lifestyle’, although it did not amount to a lavish one.
He handed Caley a 16-month prison sentence, suspended for two years with supervision. She was also ordered to repay £5,000 of the money claimed.

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