A pensioner from Brighton spent £50,000 personal injury compensation on "fine wine, fine food, male companionship and escorts" so she would not lose her housing benefit, a court has heard.

Angela Nangle made withdrawals of up to £3,000 a day so that she would not have to declare the money as a form of income, Brighton Magistrates' Court was told.

The 62-year-old, of Marine Parade, notified Brighton and City Council in 2009 that she would be receiving personal injury compensation in excess of £16,000 - the minimum amount which would deprive a person of benefit, but it was placed in a trust fund so it would not be taken into account for housing benefit purposes, council prosecutor Len Batten said.

But in August 2013, Nangle failed to declare any money was being held in a trust fund on a review form and questions were raised as to what she had done with the cash, Mr Batten said.

The prosecutor claimed that between May 27 and June 29, 2012, Nangle had made daily withdrawals averaging up to £3,000 until the money had run out.

He said: "The defendant admitted she had been withdrawing the money in cash rather than putting it into a bank account because she knew if she did it would be included in a housing benefit claim.

"She said she had not kept receipts but had spent the money on fine wine, fine food, male companionship and escorts, and that she had withdrawn it quickly because it was more trouble than it was worth to keep it."

Nangle pleaded not guilty on November 7 last year to failing to notify Brighton and Hove City Council of a change in her circumstances between May 27 and June 29, 2012, the court was told.

John Hunter, defending Nangle, claimed the wrong test as to whether it was reasonable for the pensioner to claim housing benefit had been applied by the council officer looking at the case and said it was unclear whether an offence had been committed.

Magistrates adjourned the case and told Nangle she would next appear at Eastbourne Magistrates' Court on March 6 for a pre-trial review hearing.