A mother-of-two pocketed nearly £30,000 in rent by claiming she was single while she was living with her partner.
Atoosa Raisdanaie claimed £850 a month housing benefit from Brighton and Hove City Council for the house where she lived in Carden Crescent.
But she failed to inform the local authority she did not live alone but with her boyfriend, John Agate, who owned the house jointly with her brother.
Raisdanaie also claimed she was unemployed but she had been working at two children's nurseries in the city.
The 49-year-old admitted four charges of benefit fraud at Lewes Crown Court.
Raisanaie, who has no previous convictions, admitted committing the offences between 2004 and 2006.
She received £27,689.75 she was not entitled to and so far has not paid back a penny.
Judge Charles Kemp adjourned sentence until September 7 and warned her all options would be considered, including custody.
He said: "This matter is serious. It is a good deal of money."
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