Just to clarify, the above new requirements DO NOT affect in any way the English Language Requirements which apply to any Visa applications for leave to enter UK (Spouse / Partner / Fiance(e) etc) or to FLR(M) (Further Leave to Remain) applications.
Those applications will remain at A1 level.

The new requirements DO APPLY to ALL ILR and British Citizenship aplications from 28 October 2013 onwards. Regardless that applicant may already have a pass certificate at A1 level

Those folks who have already passed the Life in UK Test based on the previous (old) handbook will not be expected to take a revised Life in UK Test , even if they apply for settlement on or after 28 October 2013.