If you don't have enough to live on, you may qualify for a supplementary payment from the community welfare officer, usually found at the community health centre. It may be the same place you go for rent allowance.
You said "if", so they haven't actually threatened to reduce your allowance yet?
Its more likely they will threaten to cut you off altogether, until you prove your looking for work, and if you can't prove it then they will cut you off, leaving you to re-apply or whatever.
Its normal for the department of social protection to be abusive and threaten its clients, I doubt there is much that can be done about it to be honest, unless its particularly bad and you want to involve someone else such as a TD or a radio show.