Delia Clarke, 71, from Dickens Drive in Exeter, has been charged with dishonestly failing to notify the Department for Work and Pensions about a change in circumstances affecting her entitlement to Personal Independence Payment.
PIP is a benefit for people with disabilities or health conditions in the UK.
The prosecution alleges that while receiving PIP, Clarke had been employed and "could do more than she claimed", the prosecutor said.
Clarke pleaded not guilty to the charge covering the period from September 2, 2021 to July 8, 2024, when she appeared at Exeter Magistrates' Court.
The case can be heard in either the crown court or magistrates' court, but the bench accepted jurisdiction and Clarke elected for trial in the magistrates' court.
She was released on unconditional bail and will return to Exeter Magistrates' Court on December 11 for trial.
This story was produced via the Police & Crime Commissioner's Criminal Justice Court Reporting scheme.
Devon Woman, 71, Denies Benefits Fraud Charge