Been doing some more investigation on this problem. Looked in System
Settings->Security & Privacy and found on the Security tab that both
"Waking from suspend" and "Returning from blank screen" were both
checked, indicating password required in both cases. Unchecked both
items and the problem has now gone away - functionality is now as
expected. Not sure if these items were checked under 14.04 and just
ignored when resuming from suspend or whether the upgrade to 14.10
actually set these items. Bug can now be closed.

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https://bugs.launchpad.net/bugs/1386186

Title:
  Screen locking issue - account with no password set

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