Apparently, this relates to a group of people (who just happen to be women) who process Bank of England notes that have been badly damaged. It says on Bank of England notes 'promise to pay the bearer (that means the person who gives you the note) the value of 5, 10, 20, 50 or 100, whatever the note is. People send badly damaged notes to the 'Mutilated Ladies' so that they can get good notes (or credit) in return. So, 'mutilated' because the notes are disfigured, 'ladies' because this department is all women.

A mutilated lady is a female who has been disfigured from continuous violence. It has nothing to do with daily life.