James Fletcher, prosecuting, said the mother of three regularly filled in renewal application forms confirming her original statement that she was unemployed.
He explained: "She was interviewed on December 17 last year and she said she had stopped working for the NHS in 2003 and had been looking after her children and grand-children.
"She was further interviewed on January 24 and made a statement saying she had never worked for the NHS."
Payet ended up receiving a total of £21,401 to which she was not entitled. There had so far been no repayments.
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