Chumbawamba were formed in 1982 from the ashes of several other bands based in Yorkshire and Lancashire: Chimp Eats Banana, Men In A Suitcase, and Ow My Head's On Fire. Inspired musically by bands as diverse as The Fall, Monochrome Set, Wire, and Young Marble Giants and politically by the anarchist stance of Crass, Chumbawamba's activities in the early years were based around a communal house in Armley, Leeds.

Stalwarts of the cassette culture scene, the band was featured on many compilations. Chumbawamba were at the forefront of the 1980s anarcho-punk movement, frequently playing benefit gigs in squats and small halls for causes such as animal rights, the anti-war movement, and community groups. The band's collective political views are often described as anarchist. They made several songs about the UK miners' strike (1984-1985), including the "Common Ground" cassette and a song dedicated to the pit village of Fitzwilliam, which was one of the worst cases of economic decline following the strike.

By the mid-1980s Chumbawamba had begun to release material using the vinyl format on their own Agit-Prop record label, which had evolved from an earlier project, Sky and Trees Records. The first LP, Pictures of Starving Children Sell Records (1986) was a critique of the then current Live Aid concert organised by Bob Geldof, which the band argued was primarily a cosmetic spectacle designed to draw attention away from the real political causes of world hunger.

Their 1988 album English Rebel Songs 1381 - 1914 was a recording of traditional songs from that period, and was very different from their preceding work.

By the late 1980s and early 1990s, Chumbawamba had begun to absorb influences from techno music and dance culture. The band moved away from their original anarcho-punk roots and evolving a pop sensibility with releases such as Slap! (1990) and the sample-heavy Shhh (1992) (originally intended to be released as Jesus H Christ!, this album had to be withdrawn and re-recorded because of copyright problems).

After signing to the independent One Little Indian record label, Anarchy (1994) lyrically remained as politically uncompromising as ever, continuing to address issues such as homophobia (see song "Homophobia", the music video of which features the Sisters of Perpetual Indulgence), the Criminal Justice Act and the rise of fascism in the UK following the election of a British National Party councillor in south-east London in 1993.

Chumbawamba drew criticism from the band's original following in 1997 when the members signed to the major label EMI in Europe, particularly as some of their earlier output had explicitly attacked this corporation; they had even been involved with a compilation LP called Fuck EMI in 1989. The anarcho-punk band Oi Polloi (with whom Chumbawamba had previously toured and worked with on the 'Punk Aid' "Smash the Poll Tax" EP ) even released an 'anti-Chumbawamba' EP, "Bare Faced Hypocrisy Sells Records".

However, the band argued that EMI had severed the controversial link with weapons manufacturer Thorn a few years previously, and that experience had taught them that, in a capitalist environment, almost every record company operates on capitalist principles; "Our previous record label One Little Indian didn't have the evil symbolic significance of EMI BUT they were completely motivated by profit." They added that this move brought with it the opportunity to make the band financially viable (all members were up until then working in other jobs to make a living) as well as to communicate their message to a wider audience.

Chumbawamba's biggest chart hit, "Tubthumping", features what, without the context of the accompanying liner notes (removed from the US release of the Tubthumper album for copyright reasons), appears to some to be one of the most apolitical of any of the band's lyrics. In fact it was an explicitly working-class song, an anthem written to celebrate ordinary people's ability to have a good time despite being constantly knocked down by poverty and inequality.

It was also during this period that Chumbawamba gained some notoriety when male vocalist Danbert Nobacon, provoked by the Labour government's obsession with being 'down with the kids' and its refusal to support the Liverpool Dockworkers Strike, poured a jug of water over UK Deputy Prime Minister John Prescott, who did not retaliate, at the 1998 BRIT Awards.