Wallpaper problem on iPhone 5

I

iMore Question

I'll try and explain this: my wallpaper picture which I select from a photo in photo stream has suddenly gone completely blurred when I lock the phone and press Home button. I've tried selecting one of the option wallpaper pictures suppled but it's the same.
I have the same picture selected for home and locked screen. The pic looks fine on home screen behind the icons! but when I lock the phone and hit home button the picture should show without the icons of each app to impede the view.

I'm trying to think what I did since before this problem became evident: I upgraded to iOS 7.0.2
And I turned off SIM PIN which could hardly impact on my wallpaper picture!
 

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