A FORMER mill worker claimed almost £35,000 in hand-outs while he had cash stashed away in savings, a court heard.

But Bashir Ahmed, 59, of Lomeshaye Road, Nelson, was spared jailed after Burnley Crown Court was told that he had now paid back the £34,131.

Ahmed, who has two disabled sons, had been getting income support and council tax benefits because he was too ill to work. But because of the savings he would not have been entitled to as much income support, the court heard.

Ahmed admitted eight allegations of false accounting and two of failing to notify a change in circumstances to the Department for Work and Pensions.

He was given a a year-long jail term, suspended for two years after a judge said the case had exceptional circumstances.

Ahmed had £8,000 in savings which the court hear he had saved from his children's disability allowance, intending for his sons to use the money eventually.

Irahad Sheikh, defending, said Ahmed accepted he had control of the £8,000 and should have declared it.

Neil Bisarya, prosecuting, said between June 1992 and December 2002 he had between £3,000 and £8,000 in savings which would have resulted in reduced benefits, if the money had been declared.

Mr Sheikh said Ahmed worked 25 years in the mills but had to give up because of chronic back pain. He never had a lavish lifestyle and the cash was in trust for his children.