The organisation was founded in January 1917 by various London-based veterans groups opposed to the Military Service (Review of Exceptions) Act 1917, which made it possible for people invalided out of the armed forces to be re-conscripted.
The leadership was assumed by the left-wing Liberal Party MPs James Hogge and William Pringle, who fought for improved pensions and representation on relevant government committees.
Hughes, a member of the NFDDSS, stood on behalf of the group at the 1917 Liverpool Abercromby by-election, against Edward Stanley of the Conservative Party but was unsuccessful, taking only a quarter of the votes cast.
The remainder were put forward by local branches; these included three candidates in Leeds who were jointly sponsored by the rival Comrades of the Great War and National Association of Discharged Sailors and Soldiers organisations in what was termed the "Silver Badge Party".
[5] In 1920, the Federation invited NADSS, Comrades of the Great War and the Officers' Association to a meeting to discuss a potential merger, and this was achieved in 1921, establishing the Royal British Legion.