55.—(1) A pension which may be or has been awarded to or in respect of a child may be withheld, or reduced to such an extent as the Secretary of State may think fit, where periodical payments out of public funds are being made to or in respect of the child or the child is being maintained in the Navy, Army or Air Force or in any institution wholly or mainly supported out of public funds.
(2) A pension which may be or has been awarded to or in respect of a child of a member of the armed forces may be reduced by the amount of any contributions to the support of the child which are being made by, or which it would be reasonably practicable to obtain from, any parent not living in the same household with the child.