Ainsley Cresswell, from Cornovian Close, Perton, illegally received Job Seeker's Allowance (JSA) and Housing Benefit.
A court heard the 47 year old's claims, which date back to May 2013, started legitimately after his marriage broke down.
He became homeless, forcing him and his son to move in with Cresswell's parents.
But he broke the law when he set up his own 24/7 locksmith business trading under the name of Access All Areas and failed to tell the authorities his circumstances had changed.
His fraudulent claims totalled £11,904.78.
On Wednesday, magistrates in Walsall handed Cresswell a 12-week prison sentence suspended for a year and imposed a curfew for four weeks, monitored by an electronic tag, which means he cannot leave his home between 7pm and 7am.