AN out-of-work education manager has been cleared of illegally claiming benefits by hiding a £40,000 pay-off from her last employer.

Selby District Council had alleged that Rosalind Vahey, 53, of Main Street, Appleton Roebuck, near York, received more than £6,000 in council tax benefit and employment support allowance she was not entitled to.

She was cleared by magistrates of three charges of benefit fraud by failing to notify the council of a change in her circumstances.

Vahey told magistrates last month that she had worked in education management, mostly for large county councils, until she left a job with Derby City Council on October 31, 2010.

On November 26, she received £40,000 under a compromise agreement from Derby.

She claimed she told both the DWP and the council she was in line to receive the £40,000.