My DC, who is 4 next year, attends a school nursery that uses Jolly Phonics. This term they have repeated the Group 1 sounds (which they worked on last year) and will be moving on to the Group 2 sounds and blending.
I am wondering if this is a little advanced/formal for a nursery but as I have no previous experience of nursery classes, it would be interesting to hear the views of other MNers.