A FAMILY of benefit cheats held down jobs while stealing more than £130,000 in welfare payments by claiming they were too ill to work, a court heard.

Five members of the Peters family all worked at the same cleaning firm in Sale, Greater Manchester, while raking in thousands of pounds in benefits.

Allan and Lorraine Peters, from Eccles, Greater Manchester, claimed to be housebound and unable to walk while getting Incapacity Benefit, Disability Living Allowance and a mobility car each, Minshull Street Crown Court in Manchester was told.

But when investigators went to their house they seized wage slips - in false names - and a snap of the couple, smiling and seemingly pain-free as they boarded a gangplank for a boat trip on a Spanish holiday.

Today, Peters and his son Garry, were each jailed for nine months for benefit fraud. Lorraine Peters, her brother and another son, were all given non-custodial sentences by Judge Roger Thomas QC.

The court heard Mr Peters, 56, said on his claim form he suffered from angina, chronic pulmonary disease, sleep apnea, spondylitis and high blood pressure, adding he needed oxygen to be kept in his car and simple tasks like getting dressed were a “nightmare”.

He claimed £32,000 in benefits over a four year period while being paid £90 a week for doing 16 hours at North West Cleaning where his wife, two sons and brother-in-law also worked.

His wife was on the highest rate of benefits for her 'disability', claiming she suffered a 'catalogue' of illnesses, could not leave the house or do anything herself without help and need a nebuliser daily.

In fact she was a site supervisor at the firm - while being paid £37,500 in benefits.

Her son, Garry, 31, a father-of-one, claimed to suffer arthritis from the age of 23 and was paid Incapacity Benefit and Income support worth £39,000 for more than six years.
In fact he held down two jobs at the same time - as a cleaner working with his parents and as a window cleaner earning £60 a week.

Another son, Martin, 28, claimed Income Support, Jobseekers Allowance and a Carer's Allowance, supposedly for looking after his ill parents. He stole benefits worth £10,000 the court heard.

Fraudulent

Finally Compton McKenzie, 51, the brother of Lorraine Peters, also fraudulently claimed £10,000 in Incapacity Benefits.

In all, the family milked the system of around £130,000 over a period of between three and seven years, the court heard.

Lorraine Peters is now back on benefits, having re-applied and been granted - this time legitimately - incapacity benefit, disability living allowance and a mobility car.

Her husband also applied for benefits but was refused.

Garry Peters was working as a van driver, and in receipt of family tax credits, before he was sent to jail.

He offered to pay back the stolen funds at £80 a month - which would take more than 40 years to clear the debt.

The court heard the family simply gave false names and made up National Insurance numbers after Garry Peters first began working for the firm in 2004, before being joined by his relatives.

But they were all caught in January 2008 when the Department for Work and Pensions began investigating the firm.

All five eventually confessed to benefit fraud at a previous hearing.

The Peters' lawyer told the court the holiday snap was simply a three day trip to Spain, paid for by their daughter and they were not living a flash lifestyle at the taxpayers expense.

Judge Thomas, passing sentence, said it was wrong to say the family 'lived the life of Riley' by fleecing the benefits system - but said the system depended on people's honesty.

“The whole benefits system in this country is based upon the trust and honesty of those who claim,” he said.

“Those who are dishonest are dishonest towards legitimate workers and taxpayers who provide finance for this system.

“Quite clearly between the five of you a scheme had arisen that brought each of you to work for the same company while still claiming benefits.”

Lorraine Peters was sentenced to nine months imprisonment, suspended for two years.

Unemployed Martin Peters, paying off the £10,000 overpayment at £5 a week, was given a 12 month community order, a 160 hours unpaid work order and a six month supervision order.

Compton McKenzie was ordered to carry out 160 hours unpaid work, given a 12 month community order and a two month night-time curfew.

Mr Peters senior is appealing the DWP decision not to pay him benefits.