Hi Stevie,
This is a new requirement.
For Naturalisation, 'old rules' (pre-July 2012) or 'new rules' do not come into it.
Anyone who applies for Naturalisation on or after 28 October 2013 will need to have:-
1. A Life in UK Test (if a pass is already held then it will not need to be retaken)
2. A pass certificate for English Language speaking and listening at B1 level or higher
Unfortunately Steve, this means your wife will need to take this new English Language test before she can apply for British Citizenship.