Hello mrz - yes our school introduced 'sound of the week' for DD2 when a new Class R teacher started - based on various jolly phonics phonemes. I was a bit [hmmm] at first but in fact knowing that they were working on 'ah' sounds that week, getting sent home a copy of the 'ant' song and simple words like hat, cat, sat - really helped.
At first this all seemed dead obvious but they carried it right on through progressively more complicated sounds: combined vowels 'ee', 'ai', 'ay' and blended sounds: 'th', 'wh' & 'sh'. Each week a few new laminated example words (with actions) were attached to my DD2's key ring and we'd happily learn them over the weekend and she'd use them in class to songs or in work.
I don't understand the logic or the where's or why for's - but for DD2 - she took to this really quickly, enjoyed it and was reading by end of Year R. DD1 who had more of a look and say approach (much like I did) didn't really 'get reading' until late Y2. The sounds with jolly phonics have songs and the actions for words (especially High Frequency Words (HFWs) were sweet and all the kids seemed to enjoy it).
Now every child is different, etc. etc... - but systematically working through sounds, parents being encouraged to pick out words with 'this week's sound' whilst reading and encourage DCs to read those words, etc... - seemed joined up, lead to good progress (at least for my DD2) and the building blocks of what was being taught in the classroom were clearly communicated to parents.
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Hi Maizie D - again just a lowly parent here - no idea why actions words work but they did. More info here: www.actionwords.co.uk/welcome.htm with little cartoons acting them out. There's more info there about why they think it works. This may well all be a load of hooey - but DCs definitely enjoyed this and generally seemed happier and learning to read more readily than DD1 & her cohort 2 years earlier following a largely look and say approach.
HTH