Unfortunately, privacy settings are not available in the current version of Skype for iOS device. You may indeed need to access your account using a computer to change your privacy settings. Once this is done, the selected privacy settings will also apply to your account when you login to Skype in your iPad.
I hope the Skype folks realize how completely ridiculous this is! With the advent of the iPad, many folks are now traveling without laptops and have absolutely no access whatsoever to a computer with Skype installed. It's patently unfair (and extraordinarily short-sighted) to glibly state that yup, you need to log in on a computer.
Not only is there no way to change privacy settings on iOS devices, there is no way to change them at skype.com
Can somebody from Skype please kindly confirm that you are addressing this glaring shortcoming in your service, SOON?
This is a major issue. The iPad and iPhone imo are those platforms where Skype provides most value. I will also have to uninstall until this is fixed, which is a shame as it has become my mobile phone.