Much as in the First World War, it was recognised that those who had been discharged from the services in wartime due to injury should have some outward symbol of this to acknowledge both their sacrifice and to prevent them being branded a coward who had refused to fight when the very opposite were the case. In World War One an intricate design in silver, marked ‘For Services Rendered’ had been issued. In World War II a simpler design was chosen that consisted of a circular badge with a crowned royal cypher and the words ‘For Loyal Service’ around the outside:

Officially this badge was known as the ‘King’s Badge’ and it was to be worn only on civilian clothing. By the end of 1941 over 8,000 had been issued to not only the armed forces , but also coastguards, police, civil defence personnel and the Home Guard if they had been discharged through injury.
The badge was produced in two sizes, one was 1″ in diameter and can be found with either a moon shaped lapel fitting or a brooch pin for ladies and a smaller 3/4″ buttonhole version. The fastners for the buttonhole were seperate pieces soldered to the rear:

The badge was made by die-stamping and unlike the World War One badge they are un-numbered so there is no way of identifying who was awarded a specific badge.