This badge is often referred to as the Silver Wound Badge but its correct name is The Silver War Badge. It was created in 1916 and was issued to soldiers who had served in the military but had been honourably discharged - most often because they had been wounded but illness also quailified. It was worn on civilian clothing and its main purpose was to allow those in civilian dress to avoid being branded a "shirker" for not being in uniform. It could be obvious with those who had been maimed, lost an arm, leg etc, but many had no visible signs of their injuries or illness and were harrassed in the streets - usually by women, accusing them of cowardice. Wearing this badge made it obvious that the individual had "done his bit". The badge was issued with an elaborate certificate. Here is one being worn, and the certificate which accompanied the badge.