Story points are used to estimate the relative complexity of user stories in an agile framework like Scrum. They provide an easier comparison between stories than estimating time. A team agrees on a reference story and then estimates new stories in points relative to the reference. This allows the team to track their average velocity of completed points over sprints to forecast how many sprints future work will take. There is no explicit Scrum event for estimating points but it commonly occurs during backlog refinement.