A new tutorial showing how to set up a Live Photo as a wallpaper for your home screen and lock screen is available on Apple's support channel on YouTube.

The appropriate function for setting a selected Live Photo as wallpaper is available in the action and sharing panel in iOS. Just tap in the preview view of the selected photo, tap on the share icon in the bottom left corner (square with upward arrow) and then tap on "Set as Wallpaper" in the list of available actions.

{youtube url="https://www.youtube.com/watch?v=cX4Bt3UyB9w"}}