My dulux paint is bubbling

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Hello. I am having problems. I have been decorating my spare room and changing the colour from a blue/grey back to white.

I decided to use cheap white paint to cover up the grey as this colour is around the house elsewhere and you can still see it through the painted walls (grey was done by previous owner) so my theory was to have all the walls looking 100% white and then stick the good dulux paint on

I used most of the cheap paint and had complete coverage and no grey coming through and then the First coat of dulux went on fine and looked great however I wanted 2 or 3 coats on the walls. After applying the second coat the wall was covered in bubbles. I didn’t notice at first as I painted the 2nd coat and did other stuff. When I inspected the bubbles I noticed that the whole painted area could be peeled off. Literally can peel the first and second coat of dulux off the wall. I can only assume the dulux isn’t applying itself to the cheap base coat which was completely dry. My plan is to get an orbital sander and just sand the whole wall. Will this be suffice enough to apply the dulux paint?. I’m assuming sanding it down will remove most of the previous paint as well giving me a clean surface to paint on?. The whole point was to avoid spending time removing grey paint by sanding and creating a mess with dust.
 

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If the cheap paint is sticking to the grey and just the Dulux coming off it may be you used silk finish to cover the grey and putting matt over it which often causes problems.
Edit
Just saw the matt on the tin when I enlarged, so if that is the undercoat you used my suggestion is wrong. If the "cheap" paint is coming off there is a fault with contamination of the grey. You have not used any PVA have you?
 
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Sometimes it doesn't pay to use cheap paint as a first coat.

Does the cheap paint have a 'chalky' finish?
 
Sometimes it doesn't pay to use cheap paint as a first coat.

Does the cheap paint have a 'chalky' finish?
Yes. Since this post I have sanded the wall back as it kept bubbling. Have now applied a couple coats of primer so will see what happens after a few days so it can fully dry
 
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If the cheap paint is sticking to the grey and just the Dulux coming off it may be you used silk finish to cover the grey and putting matt over it which often causes problems.
Edit
Just saw the matt on the tin when I enlarged, so if that is the undercoat you used my suggestion is wrong. If the "cheap" paint is coming off there is a fault with contamination of the grey. You have not used any PVA have you?
Hi I forgot I posted this here, the Grey was on the wall from the beginning. I put the cheap Matt on and then found the dulux bubbled on top of the Matt. I’ve probably went about it the wrong way. Currently sitting with a sanded wall and I have been applying primer so will see what happens now
 
What primer are you using, and is the grey now sound and dust free do try a small area say a metre sq before doing the whole wall to ensure you don't have another bad coat to strip.
 
What primer are you using, and is the grey now sound and dust free do try a small area say a metre sq before doing the whole wall to ensure you don't have another bad coat to strip.
It’s a multi surface primer and undercoat recommended by the person at the paint desk in b&q
 

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