The following subsection is inserted after subsection (1)—

“(1A)

Where a reduction in the rate of unemployment benefit payable to a person falls to be made under this section the reduction shall be made, so far as is necessary—

(a)

initially against so much of the benefit as falls to be paid by virtue of subsection (4) or (6) of section 14 of the principal Act (basic rates) or of regulations under section 33 of that Act (1ower rate where contribution conditions partially satisfied);

(b)

then against so much of the benefit as falls to be paid by way of earnings-related supplement under subsection (7) of section 14 ;

(c)

then against any increase in the benefit payable under section 44 of the principal Act (dependent adults); and

(d)

finally against any increase in the benefit payable under section 41 of the principal Act (dependent children).”.