summersanta
I had this exact situation with DD1. There was definitely no dyslexia issue she just took to reading very slowly. Partly because the school hadn't really fully embraced phonics at that point (the difference with DD2 where they totally adopted jolly phonics under a new teacher was night and day).
We realised that nightly reading simply HAD TO HAPPEN, rather than as and when we could.
So STEP 1: Make 15 - 20 minutes for reading. If it bothers you that your child can't read - then find the time to change that.
STEP 2: Be realistic - if the book from school is too hard/ if they're unwell or tired - take up the slack and read to them (they will benefit) - use your finger and let them see the word you are reading.
STEP 3: Little steps. We started by having DD1 spot words she knew in a sentence (The, She, He, His, Hir, This, That, And, End, etc....) and we built up reading from there. First easy sentences. Then whole paragraphs. Then every other page (I let DD1 cheat and decide which pages had most pictures) and then you suddenly find they're happy to read it all to you.
If you haven't seen Jolly Phonics workbooks (especially if this is the phonics system your school uses) - consider getting these and using them over the summer. They introduce letters and sounds individually and in groups one by one, helping you to build up sounds in English. It's organised like a colouring book and there is letter formation practice (which is no bad thing either!). It may be worthwhile to get these (there are 7 in the set) and work through them [perhaps from where your DC is at] over the summer to try and 'close the gap'. DD2 got these late in Y1 and we just did a bit each day between Y1 and Y2 and it genuinely made a big difference.
STEP 4: Just keep signalling that THEY WILL GET THERE. It really is important to show your DC that you totally believe they'll crack this reading lark in the end. It will give them confidence to keep trying.
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Fun things:
Buy magazines in the store and read those instead of a book - there are tons of children's tv show related magazines available. Lots of reading, games/ maths, etc...
Encourage reading when you're out and about - reading signs, posters, etc....
Get CDs for the car or download books on your MP3/ Iphone/ Ipod for the car - hearing good stories read well is also improtant and really gives your child a feel for English.
If your DC feels left out - say everybody is reading Harry Potter in Y4 and they're not - then opt to read that together at night and help them. Discussing the story, interesting characters, funny names, meanings of words, etc... will be incredibly useful for KS2.
We found our biggest success came from reading our favourite books to our children. We did this as a weekend treat, when we had more time and it slowly crept into the week as well. Really nice way to wind down together after a long day and lovely to revisit old favourites.
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I know it is very depressing to see your child struggling to read, especially if you're there in the class on a reading morning and everyone else seems to be reading complicated things beautifully. I found that observation for DD1 vis a vis her classmates almost physically painful to be honest. It wasn't a competitive thing - it was just really upsetting she couldn't do it too.
But I can assure you that if you treat the process of learning to read as water on a stone and just keep chipping away at it - doing 15-20 minutes of reading with your child each day - you will get there and have a very strong little reader.
If you haven't come across it Oxford Owl has free e-books but also has information to help with phonics and learning to read - www.oxfordowl.co.uk/reading-owl/reading
HTH