Despite their limited numbers, (they numbered only 8 MPs following the 1935 General Election), National Labour retained cabinet rank offices in the Baldwin and Neville Chamberlain governments until 1941, when Malcolm MacDonald moved from the office of Minister of Health to become a Minister resident in Canada for the remainder of the Second World War. He was able to retain his seat in the House of Commons and it was presumed he would return to government again.
Just before the 1945 election the National Labour party formally dissolved and its remaining MPs either retired from Parliament, stood as "National" supporters of the continuation of the National Government (better known as Winston Churchill's "Caretaker Government") or stood as independents. Only one was subsequently elected under that label. Malcolm MacDonald retired from active politics, though another former National Labour cabinet minister, Earl De La Warr, returned to ministerial office in the 1951-1955 Conservative government of Winston Churchill.