Hi Madmum04:
First - I think you do have to start at square one with no assumptions and just ask the teacher her opinion on how your daughter is progressing. If she's all breezy and informs you your daughter is progressing at the expected level then I think you do have to gently raise that you are a bit disappointed with her progress and would like to understand how's she's performing on the SAT levels for KS1 (is she on track to make Level 2 in Y2).
Now what can you do at home? Well the obvious first step is to start with reading with your daughter yourself and trying to gradually shift the burden of reading out loud from you to her. This isn't always straightforward and there will be good and bad days, but the point is your daughter will need practice and support in these first forays into reading on her own. This is serious big girl stuff.
Bored with books from school? You're not alone! If you search ORT on Mumsnet you'll see that there are tons of us out there who have got fed up at various points. My personal low was three weeks of Big Panda/ Little Panda with DD2. It nearly killed us. A lot of parents get really fed up with Kipper and Chip stories. So if you and/or your daughter (or both of you) need more variety I strongly suggest you get yourself to a library and start exploring all the wonderful books out there.
In the meantime some great websites full of ideas for reading by age group:
The Bookfinder list on the Book Trust will help you find out about what is avaialble and appropriate for age level: www.booktrust.org.uk/books-and-reading/children/
The guardian had a lovely spread about how to build a great library of books for children: www.guardian.co.uk/books/series/building-a-children-s-library
There also is a lovely website with a list of classic reading for children: www.kidsreads.com/lists/classic-lists.asp
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Phonics support. If your school isn't using phonics or your daughter needs more support with phonics (or you're just curious & want to find out more) try:
Mr. Thorne does phonics (videos): www.mrthorne.com/
you can also download apps from this site
Jolly Phonics (more info here jollylearning.co.uk/) has a lovely range of step by step phonic sound workbooks which are available from most book shops (even big newsagents). There's colouring, writing out and sounding out to do and working through these together can help a great deal.
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Now what I will say from my own experience with DD1 (to which reading, writing and maths all have come slowly and painfully) is that you must always remember that this learning lark is a marathon and not a race. Odds are your daughter will get there in the end - but it may take a bit more time than you expected.
But if your 'Mum instincts' are saying I'm worried about this and I'm unsure/ unhappy/ uncertain this is o.k. - then the odds are you're right. Now will the school teacher be supportive - well that's difficult to guess. But you'll never know unless you go and ask for help. However, as many on Mumsnet will agree - even if the teacher refuses to believe there is a problem, you can help at home. Just decide o.k. it looks like I'm going to have to put a bit of extra time into this at home.
Don't go crazy - but set yourself a workable target (say 2 or 3 nights a week for 10 minutes or so, I'm going to seriously settle into a routine of getting my DD to start that process of reading to me). Start learning what you can do and try to start this work with your daughter very slowly (say 10 minutes here and there) and start asking for some sounding out in reading (or phonics workbooks) to just start to get that letter sound recognition skill improving. The lovely thing about this is that reading with your child is a very hands-on family friendly thing to be doing. Keep it relaxed and happy. If she's had a bad day - you take on the lion share of reading or let her read a favourite book she's virtually memorised anyway. If she's enjoying it and is all fired up - then sure go ahead and read another little book. But whatever else don't give up on her. Show her you believe she can do it and praise her like mad for every little step along the way she makes.
Look at it this way - it's pennies in the bank for when she's a teenager!
Best of luck Madmum04!