DD has just moved into YR3.
She became a free reader at the end of YR2 and got very good SATs results in reading comprehension with only the Inference section (where she got two questions wrong) meaning that she didn't get Working at Greater Depth but got Expected instead (I found this out from having a discussion with the class teacher at the end of term).
When she left Reception she was on Purple Band books (Level 8) and then moved onto Gold during the first half term of YR1.
Her progress seemed to slow down at this point and she had very little interest which is why it took her the rest of KS1 to get to Free Reader. She reads slowly but always takes in everything she's reading and can answer very specific questions about what she's read with ease. She also is very fluent using all punctuation correctly and putting on voices for different characters, she has lovely expression when she reads (not just my opinion but a continual message from the teacher when they comment on her reading). But I think maybe she was pushed too hard as she now has no interest in reading whatsoever.
The school have just introduced a new reading scheme and today we got her level through. They've put her at 2.6-3.6 (2.6 being her current level) which is the equivalent to Gold level books!!!! 
This was done purely on the STAR test (reading a story online and answering questions on it) so with no input from the teacher at all, I'm really really cross.
The worst thing is that I struggle to get her read as it is and now she has such a small selection to choose from that it's only going to get worse.
At home she's reading 'My Naughty Little Sister' - it's the only book I've managed to get her to read in the last few months and she's really enjoying it but these books are a Level 4.7-5.0 so apparently above her level but they're clearly not. She always tells me exactly what each story is about and what's happened, sometimes even quoting from the book itself.
She brought a book home about football yesterday which was within her 'range' but she said she only had a minute to choose one and there was nothing she liked.
So I've put a note in her reading diary saying that we will not be reading the school books. Her love of reading has already been destroyed by the mind-numbing books she's had to read at school and I refuse to do further damage by making her read the drivel that she's brought home and that I will let her continue with the books she actually enjoys (if I can find any - she's even been put off reading at home even though we have shelves of books and she loves being read to).
I understand that this will mean that she can't be assessed at school because everything is being done via the AR system on their computers (basically the teachers will never hear them read now - they have to read a book and then answer a quiz online - that's it), but I refuse to put her through this if it means that not only her confidence will plummet but any chance of getting her to read for pleasure will be gone.
Am I going to damage my child by taking this stance?? I will make it clear to the school my reasons for refusing their scheme but I am appalled that effectively they've failed her for the last 2 years if she's back to Gold level!!
Can you tell that I'm angry? She's not the only one by the way - there are others in the same boat but all the children that were in her reading group before the end of term appear to be Level 5 and above!! So in my view either the teachers have got it very wrong over the last 2 years or she's suddenly forgotten everything she's learned over the last 2 years (unlikely...). 