Is this a good enough solution? (reading groups)

[DaisyheadMayzie]

I'm in NZ, DD is 6.5 and has just started year 2. She's a good reader but not exceptional - she was in the second highest group. I was concerned when she went into her new class that everyone else out of the top two groups were in the other class and it appears my concerns were right - she is on the highest reading level in the class and the class teacher has put her in a group with children between 2 and 4 levels below her and is giving them reading books that DD has already read.
I spoke to her teacher and she was aware of the discrepancy and said she was happy for DD to read chapter books at home and they'll continue to work on these reading books at home 'for comprehension'. At the time I thought this sounded like a good plan but now I'm wondering if it's a bit of a cop out.
If DD's comprehension has already been assessed at higher than these books they are studying, then there seems little point in her doing them again. And whilst she is studying books at a lower level than she should be, she isn't learning anything new from the higher level books. Reading chapter books at home is great for me as I don't have the battle with the boring reading books, but what she learns from a Rainbow Fairy book isn't going to be the same as from a proper reading book assessed at her level. Also I don't actually think her reading is good enough to move to free reading, albeit only at home.

Or do you think I'm making a big deal about nothing? What is the ideal solution? Moving her to the other class for reading so she is back with her reading group? Giving her her own books in this class?

Our school - and it's definitely common practice in the UK - differentiates across forms and sometimes year groups for literacy ie if the two classes do reading at the same time, she should be able to be in a group which better meets her needs by swopping to the other class.

No, it's not acceptable. Why can't she be put into the other class?

In DDs school it is common for children to go into different year groups for read, write, inc. There is certainly no one in a group many levels below them. That sounds like very lazy teaching

I don't think you should rely so much on school to stretch her reading skills. I would see school as supplemental and more structured compared to what my child could get at public library to read.

In my DC school no child ever goes into a higher year group to work with the older kids. I asked about my DD doing it and was told a definately no!!

She does go into yr2 to get higher level books though (she is in reception) but that is about it.