iPhone 3GS Bluetooth not locating any devices since new update.

iPhone 3GS, prior to most recent iOS update, would locate Bluetooth devices, which enabled me to connect my ipad to my phone so the ipad could use the phones Internet connection. However, since the most recent update the iPhone does not now find any Bluetooth devices at all. If I lay down the ipad and the iPhone next to each other, the iPhone finds nothing and the ipad finds everything. I have read a few threads but can't seem to find anything that covers this..

I have reset the network settings to see if that helped, turned on and off both devices, even tried activating Bluetooth in different order, as suggested in a different thread, but all to no avail. It worked perfectly prior to the latest update.

iPhone 3GS using iOS 6.1.2.

Ipad 2 using iOS 6.1.2

Any help gratefully received.

Thanks