Apple has just announced live from their iPhone event that the entire iWork suite comprising of Pages, Numbers, and Keynote as well as iMove and iPhoto will be free with the purchase of any new iOS device.
Currently, all of these apps are priced at $9.99 in the App Store. There doesn't seem to be any mention of GarageBand but if we hear anything on that being included, we'll update as we know more.
Update: Apple's website is showing that iWork will be free for all iOS 7 qualifying devices purchased after September 1st. We aren't sure if this means Apple will issue refunds to anyone who purchased iWork after that date or not. More on this as we can receive clarification. Currently, the verbiage is only showing up on Apple's US website.
Thanks to all who sent in the tip on the website verbiage!