DS is 6 (nearly 7, obviously!) and in Yr 2. He brought home yesterday a Lime level reading book, which we are ploughing through. He is reading a few pages at a time, and had good comprehension, can use expression when he chooses etc. However, he still rushes punctuation, and still guesses unfamiliar words - often plausible guesses - but does not use phonics to work things out, just guesses based on the initial letter, which means at this level, he is getting quite a few words completely wrong. He has always been stronger at whole word recognition, so can read things like 'unfortunately' or diplodocus' because he has learnt them, but give him a word like 'unruly' or a name like 'Carl', that he hasn't come across before, and he will just guess.
He was reading gold level before, I think, which he seemed ok on (although obviously still a degree of guessing. He does not read by himself, ever, nor can he read in his head yet.
So, WWYD? Ask school to change back to a lower level (tricky because DS is very sensitive and emotional and may not react well), or carry on when it is possibly denting his confidence because I am having to correct him every couple of sentences...
Just as an aside, for some reason, he has been targetted as getting a level 3 in reading for the end of year 2. No idea why, his is pretty average in his class. My cynical mind is saying that his teacher is just getting him to meet his target (on paper, at least).