The classes are set but only to four ability groups. It used to be 8, but timetabling prevented this and things have not been so good since.
IMO the top set must surely cover a much wider ability group than the next one down, especially as the school would put children in there who would find the pace challenging but it does their self-confidence good to be there.
DS1 putting his hand up has been an issue which I've been encouraging him to address. He decided to not put his hand up to answer questions that the teacher must surely realise he could answer, so he thinks she must be asking for the benefit of those who are learning that day. Also DS is not keen to compete for attention with the people who are so keen to answer that they can barely stay in their seat! (This is DS1's logic).
He decided that he'd have a policy of only raising his hand when he had something unique to contribute. As you can imagine, with questions about work aimed at the general class, he wasn't contributing much at all. He didn't have any questions because he mastered the work a while ago, and has already written down the answer.
Moreover, he doesn't like show-offs. In fact both my boys really actively don't like show-offs. (Yes, I have spoken to them about being tolerant and how it takes all sorts). So, what DS1 does not want to do is become a show-off himself. In practice, that means he will not put his hand up in every single lesson and tell the teacher in front of the class that the work that they are doing is too easy for him. This is precisely what the head of department suggested he do.
Instead DS1 told the teacher privately a couple of times, I told her twice and DS1's form tutor also told her. She knew but nothing changed. Now the HoD knows too and still nothing, has changed.
So, my solution, was to suggest that DS1 puts his hand up in each lesson, until he gets picked once, and to just get taught at home at whatever pace he wants.