The unexpected emergencies stress test is designed to check that there is sufficient cash available for large one-off emergency expenses, should they be needed.
The amount of emergency expenses is set at 50% of the current level of essential expenses. These are applied as a one-off expense every 5 years, starting in 5 years time until the end of the plan.
To keep the test robust, these payments increase in line with CPI each year.
Any essential expenses which start in the future are not included.