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The Luddite movement emerged during the harsh economic climate of the Napoleonic Wars, which saw a rise in difficult working conditions in the new textile factories paired with decreasing birth rates and a rise in education standards in England and Wales. Luddites were not opposed to the use of machines per se (many were skilled operators in the textile industry); they attacked manufacturers who were trying to circumvent standard labour practices of the time. The movement began in Arnold, Nottinghamshire, on 11 March 1811 and spread rapidly throughout England over the following two years. The British economy suffered greatly in 1810 to 1812, especially in terms of high unemployment and inflation. The causes included the high cost of the wars with Napoleon, Napoleon's Continental System of economic warfare, and escalating conflict with the United States. The crisis led to widespread protest and violence, but the middle classes and upper classes strongly supported the government, which used the army to suppress all working-class unrest, especially the Luddite movement. The Luddites met at night on the moors surrounding industrial towns to practise military-like drills and manoeuvres. Their main areas of operation began in Nottinghamshire in November 1811, followed by the West Riding of Yorkshire in early 1812, and then Lancashire by March 1813. They wrecked specific types of machinery that posed a threat to the particular industrial interests in each region. In the Midlands, these were the "wide" knitting frames used to make cheap and inferior lace articles. In the North West, weavers sought to eliminate the steam-powered looms threatening wages in the cotton trade. In Yorkshire, workers opposed the use of shearing frames and gig mills to finish woollen cloth. Many Luddite groups were highly organised and pursued machine-breaking as one of several tools for achieving specific political ends. In addition to the raids, Luddites coordinated public demonstrations and the mailing of letters to local industrialists and government officials. These letters explained their reasons for destroying the machinery and threatened further action if the use of "obnoxious" machines continued. The writings of Midlands Luddites often justified their demands through the legitimacy of the Company of Framework Knitters, a recognised public body that already openly negotiated with masters through named representatives. In North West England, textile workers lacked these long-standing trade institutions and their letters composed an attempt to achieve recognition as a united body of tradespeople. As such, they were more likely to include petitions for governmental reforms, such as increased minimum wages and the cessation of child labour. Northwestern Luddites were also more likely to use radical language linking their movement to that of American and French revolutionaries. In Yorkshire, the letter-writing campaign shifted to more violent threats against local authorities viewed as complicit in the use of offensive machinery to exert greater commercial control over the labour market. In Yorkshire, the croppers (highly skilled workers who trimmed the nap from fabric to produce smooth, finished cloth) faced mass unemployment due to the introduction of cropping machines by Enoch Taylor of Marsden. This sparked the Luddite movement among the croppers of Yorkshire, who used a hammer dubbed "Enoch" to break the frames of the cropping machines. They called it Enoch to mock Enoch Taylor, and when they broke the frames they purportedly shouted "Enoch made them, and Enoch shall break them." Luddites clashed with government troops at Burton's Mill in Middleton and at Westhoughton Mill, both in Lancashire. The Luddites and their supporters anonymously sent death threats to, and possibly attacked, magistrates and food merchants. Activists smashed Heathcote's lace making machine in Loughborough in 1816. He and other industrialists had secret chambers constructed in their buildings that could be used as hiding places during an attack. In 1817 Jeremiah Brandreth, an unemployed Nottingham stockinger and probable ex-Luddite, led the Pentrich Rising. While this was a general uprising unrelated to machinery, it can be viewed as the last major Luddite act.

=== Government response === 12,000 government troops, most of them belonging to militia or yeomanry units, were involved in suppression of Luddite activity, which historian Eric Hobsbawm wrote was a larger number than the army that the Duke of Wellington led into Portugal in 1808 during the Peninsular War. Four Luddites, led by a man named George Mellor, ambushed and assassinated mill owner William Horsfall of Ottiwells Mill in Marsden, West Yorkshire, at Crosland Moor in Huddersfield. Horsfall had remarked that he would "Ride up to his saddle in Luddite blood". Mellor fired the fatal shot to Horsfall's groin, and all four men were arrested. One of the men, Benjamin Walker, turned informant, and the other three were hanged. Lord Byron denounced what he considered to be the plight of the working class, the government's inane policies and ruthless repression in the House of Lords on 27 February 1812:

I have been in some of the most oppressed provinces of Turkey; but never, under the most despotic of infidel governments, did I behold such squalid wretchedness as I have seen since my return, in the very heart of a Christian country. Government officials sought to suppress the Luddite movement with a mass trial at York in January 1813, following the attack on Cartwrights Mill at Rawfolds near Cleckheaton. The government charged over 60 men, including Mellor and his companions, with various crimes in connection with Luddite activities. While some of those charged were actual Luddites, many had no connection to the movement. Although the proceedings were legitimate jury trials, many were abandoned due to lack of evidence and 30 men were acquitted. These trials were intended to act as show trials to deter other Luddites from continuing their activities. The harsh sentences of those found guilty, which included execution and penal transportation, quickly ended the movement. Parliament made "machine breaking" (i.e. industrial sabotage) a capital crime with the Destruction of Stocking Frames, etc. Act 1812. Lord Byron opposed this legislation, becoming one of the few prominent defenders of the Luddites after the treatment of the defendants at the York trials.