In my DCs school we have a Foundation unit. This covers nursery and reception classes, although we call them foundation 1 and foundation 2. Children learn is through play, circle time type activities or small groups for more structured work, such as writing, reading and some numeracy.
The room is set out into areas such as construction, maths, literacy, role play, etc. The children in foundations 1 and 2 play side by side, however are split up for teacher led activities. The transition between nursery reception is smooth for children and parents.
Children dont begin to bring reading books or homework until after christmas. They learn through play in a variety of ways, such as, a child playing with blocks is improving his dexterity/motor skills. A child playing with cars might be asked, how many cars do you have? How many will you have if you have one less?
This school is in a very deprived area, and many of the children begin school way below average but catch up or even excel the national average by the time they go to year 1. We were named as, one of the 20 outstanding primary schools excelling against the odds, in a new ofsted report
The foundation unit has been running for 6 years now and has been proven to be very sucessful with staff, parents and pupils.