It's not clear why a bayonet charge was needed, but I suspect it was an ROE issue. The Taliban occupied a village and were using the locals as human shields. Cpl. Jones apparently couldn't shoot because there were civilians in his field of fire.
I say give him a medal and court-martial the superior officer who put him in this situation.
I don’t think they ran out of ammo. British soldiers have historically been trained to use the bayonet as a psychological weapon designed to foster an aggressive attitude of taking the fight to the enemy and putting the fear of God in the enemy facing a load of hairy-arsed, bellowing infantry man coming at them with cold steel.