A COUNCILLOR accused of benefit fraud did not realise he had to declare his member's allowance, a court heard.

Councillor Graham Sinclair, 56, and his wife Deborah de la Nougerede Sinclair, both of Hatch Lane, Chingford, deny dishonestly claiming nearly £10,000 in benefits.

Mr Sinclair accepts he should have told authorities that he was receiving up to £832 a month of allowance after being elected in 2006.

This would have affected the amount of housing benefits, council tax benefits and income support he was receiving.

At Southwark Crown Court today, he told the court: “As far as I’m concerned, and still am, it is purely for expenses.

"I didn’t feel I needed to clarify it.”

Kevin Dent, prosecuting, said: “The original benefits form, which Mr Sinclair signed, contained a declaration that any other money needs to be declared.”

“It said in these forms again and again and again, you have got to tell us about any money coming to you.

"You were receiving a members’ allowance. How could this possibly not be any money?”

But Mr Sinclair responded: “The forms do not say anything about a civic duty allowance.

"This is not money for the household.”

Mr Sinclair said he did not know he was paying tax and national insurance on his allowance until he was interviewed by investigators in April 2007.

He said pay slips had not been delivered to his house and that he didn’t usually check how much he was being paid.

He said: “I just knew money was going in. I never stopped to do the maths.”

Mr Sinclair said the allowance went in to a different bank account to the rest of the household income and was used solely for councillor expenses, including travel and postage costs.

He therefore did not consider it to be income.

Mr Dent asked Mr Sinclair why he had not read the council’s consultation or a leaflet about the members allowance scheme that was available at an induction event for new councillors.

Mr Dent said: “You thought this members allowance would not affect your benefit entitlement, how could you be so adamant if you had not read the rules?”

He added: “The reality Mr Sinclair is that since becoming a councillor, you have deliberately chosen not to reveal your true situation to the benefits authorities because you wanted a bit more money.”

Mr Sinclair said: “Why would I want to serve the community for 40 years and for a short-term gain risk a long-term loss?”

Mr Sinclair, who has no previous convictions, is a magistrate and well known community figure.

He has served on the Police Community Consultative Panel, and chairs the Independent Advisory Group, which advises the police.

Waltham Forest Police Borough Commander Mark Benbow appeared in court today as a character witness and described Mr Sinclair as “discreet”,“trustworthy” and “honest.”

Mrs Sinclair denies making dishonest representations on a benefit claim form.

The trial continues.