In the U.K. there is a strong assumption that you have to use phonics. This is not true. There are some advantages and some disadvantages to phonics. The disadvantages tend to be glossed over by the vested interests: ie schools and 'educational' publishing companies.
At the bottom of everything is the first principle: phonics sells product, and product makes money for the publishers.
Schools like phonics because it comes with heaps of product (which is marketed as "classroom support"): workbooks, flash cards, puzzles, games, posters, borders, the list goes on.
Phonics also helps make reading look like a difficult skill to acquire and teach, with lots of steps that have to be achieved in order. There are lots of steps and stages, each of which can be rewarded and, critically for schooling, children can be measured and graded according to how far they’ve got. With any luck, the class can be dragged along as a whole, without having to trouble yourself with the particular interests, skills or personalities of children as individuals.
There are certain difficulties. The most visible is that children learn to spell incorrectly by using "phonically logical" (should that be "fonicklee lojickull "?) techniques, which they then have to backtrack and correct later. Bigger problems are that it mystifies reading, as if parents can’t teach it; it devalues the child as an independent learner, capable of following her own interests and checking her own skills; it demands a group rate of learning; and a host of other faults, not least of which is the crushing dull 'reading scheme' books the child is subjected to.
As an alternative, you could try 'whole word learning' or 'language experience ' methods. These techniques are logical and accessible without huge cash investment and, crucially, start from the point that children are amazing learning who can understand that words are the basic building blocks of language since they carry meaning.
I’d recommend Glenn Doman's book Teach your baby to read, first published 1965, but available in updated editions. Doman developed simple techniques from working with severely brain-injured toddlers, who were capable of reading well before school age.
I learned by 'whole word' and was a regular at the library before starting school. To put that in context, in those pre-Bookstart days a child wasn’t issued with a library ticket until s/he could prove to the librarian that they could read.
I’ve assisted several children to read around 30-40 months, each 'session' taking mere seconds to a few minutes. The only requirement has been that they are interested enough to ant to take part.
The biggest disadvantage is that IME their reception class teachers have been utterly terrified at having a competent reader on their hands, as they haven’t the first idea what to do with the individual while the class is dragged along through the succession of colouring sheets and painfully monotonous chants of "a-a-ants on my arms" etc