I am afraid that it doesn't work that way.
Your wife will need a Schengen Visa despite having ILR.
She would be able to travel without it if she was a British citizen.

Only non EU partners of EU and Swiss Nationals living in the UK and in possession of residence card are able to travel to several Schengen countries together with the Partner.

http://filipinaroses.com/showthread....006#post205006