A 39-year-old woman claimed she was renting a house in Hoddlesden which she had actually inherited on her mother’s death.
Blackburn magistrates heard Victoria Knight also provided the council with a tenancy agreement for the property and a letter from a man saying he had paid her rent.
As a result of the deception Knight was overpaid £2,100 in housing and council tax benefit.
Knight, of Hargreaves Street, Hoddlesden, pleaded guilty to three charges of making a false statement to obtain benefit and false accounting.
She was remanded on bail for the preparation of a pre-sentence report.
Liz Parker, defending, said that after her mother’s death Knight had thought the house had been left to her stepbrother and there had been some confusion.
“She realises she was stupid not to make inquiries as to exactly what the situation was,” said Mrs Parker.