My son's school follows the phonics program so we have done the whole "a a ants on my arm" singing and tracing the letters.
They have sent home "tricky" non-phonic words such as said, the, me, he, my.
And now, to do over the holidays (but we have already finished it, ds2 is a second child so has picked up a lot from his older brother) they sent home a massive list of words to see if they can blend them and we tick them if they can such as
mess, mass, fin, fan, lick, luck, his, hiss, mum, dad, dog, did, etc and then all the way through to carrot and ticket!!!
Then the next sheet was them trying to blend the sound in their head and say the word out loud, example is "the egg is in the egg cup" or "the dog digs in the dirt"
Then the final sheet was CVC spellings, so it showed a picture of a cat and the child has to write "cat" the others were hen, bin, six.
This is a state primary, it is outstanding on Ofsted and it strives to be amazing not just on paper but wants every child to excel and provides lots of extra support staff and experiences (I volunteer in the school so see it first hand) We have a lot of TA's and parent volunteers (who attend a course and take a test at the end!)
I know that not every child will be able to complete the sheets, it just gives the school a more rounded idea of where the child is up to.
We started on just picture books, then ones with 3 or 4 word sentences. They do guided reading in the school in small groups so each child reads a little bit of the book and then they talk about the story, what do they think will happen/why did that happen etc.