That's true, but UKBA raised the level for all applicants making application for ILR and British Citizenship.
Look here for details of their media announcement
For entry to the UK via Settlement route visa applications, the English Language requirement is a pass grade A1 from a UKBA approved test.
For extension of leave to remain in UK under FLR(M) applications, the English Language requirement is a pass grade A1 from a UKBA approved test.
For ILR settlement applications, the English Language requirement is a pass grade B1 from a UKBA approved test.
For Naturalisation applications (British Citizenship), the English Language requirement is a pass grade B1 from a UKBA approved test.
A number of folks struggled with the timing of the announcement and needed help to understand where to very quickly secure a suitable test at reasonable cost.
Others had questions relating to previous test results and test certificate validity/expiration.
Since you'll be applying ILR in August you need to submit evidence that you have achieved a pass grade B1 in a UKBA approved English Test.
Hope that clarifies