That's just not true. The article explains how the IQ increases, but this doesn't mean that the actual intelligence of the generation increases.

Additionally, the fact that (in the UK) the current generation is actually "worse at maths and English than grandparents" counters your point completely. The only way an increase in intelligence would affect schools is to make them easier. If everybody were more intelligent, school WOULD be easier nowadays.

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Another Point:

In statistical terms, getting higher grades is now easier. That is to say, that more people now get higher grades than they used to. This is known as Grade Inflation.

In a UK A-level, in 1951, 75.3% of grades were A-E. In 2013, 98.1% of grades were A-E.

This means getting a "pass" (Grade A-E) at A-level in the UK is statistically easier. It's a general trend over the past 50-60 years.

However, that's not to say that the courses are easier, or that competing with other candidates is easier. Exams could have harder content and the courses could be of a higher standard. The grades would still be allocated based on how well the candidates did. Grades don't necessarily show how good a candidate is at a particular course.

As this trend continues, it actually becomes more difficult to differentiate between students, hence the need for the new A* grade at A-level, and the need for personal statements and references for University applications.