A former stable hand and nanny to glamour model Jordan has had a benefit fraud case against her dropped.
Joanne Hillman started working for Jordan as a stable hand
In October 2007 a jury in the trial of Joanne Hillman was discharged because of fears the case would be prejudiced by press reports of Jordan's evidence.
A retrial was set for March but now prosecutors have offered no evidence.
Miss Hillman, 34, of Woodingdean, East Sussex, had denied three counts of dishonesty. A judge returned not guilty verdicts on all charges.
The case against Miss Hillman, of Cowley Drive, had been brought by the Department for Work and Pensions (DWP).
She had been accused of failing to give prompt notification of a change in circumstances between June 2003 and May 2005.
The court had been told that Miss Hillman started working for Jordan, real name Katie Price, in about June 2003 as a stable hand.
She then also started looking after two dogs and cleaning Miss Price's house in Maresfield, East Sussex.
In total, Miss Hillman was accused of claiming £14,000 in income support, council tax benefit and housing benefit during her time working for Miss Price.
In a statement, the DWP said: "When prosecuting a case we have to weigh up the cost to the public purse of the court proceedings and the loss to public funds through overpayments.
"All overpayments of this nature have to be paid back."
The DWP confirmed it would still be seeking any overpayments made to Miss Hillman.
Neither Miss Price nor Miss Hillman were in court for Wednesday's proceedings.