Moving into the social and public sector, service design is becoming both more complex and more participatory. This is reflected in the greater diversity and interrelatedness of stakeholders and the wicked problems being addressed. However, although many service designers working in the social and public domains bring into their design practice the intention to make design more participatory and equitable, they may lack an in-depth understanding of power, privilege, and the social structures (norms, roles, rules, assumptions, and beliefs) that uphold structural inequality. In this paper we present findings from seven interviews with service designers to investigate the challenges they face when addressing power issues in design, and their experiences of how power shows up in their design process. By drawing from understandings of power in social theory, as well as the interviewees’ perspectives on how power manifests in design practice, we outline a framework for power literacy in service design. The framework comprises five forms of power found in design practice: privilege, access power, goal power, role power, and rule power. We conclude by suggesting that service design practices that make use of reflexivity to develop power literacy may contribute to more socially just, decolonial, and democratic design practices.