Oh, Indigo 
I can't really help much, sorry. From talking to you before, you have certainly explored more learning to read options than I have.
Have you worked on her working memory/processing issues? (silly question probably)
Yr3 - so she is 8ish? (sorry, dd1 is in a school where years don't count, and dd2 too small, so I still haven't got my head around the age correlation). I htink dd2 is supposed ot be in Yr2, and she is 7 this academic year...
What we are currently doing for dd1 is a mixture of sight reading/baby phonetice (the general feel is that dd1 will nt learn initially by blending/sounding out, so concentrating on sight recognition, at least for now)
so, we use a mixture of phonic Ipad apps, spelling puzzles and games (dd1 is still at the point where correct recognition of single letters is really motivating for her - she is beginning to find letters in her environment all the time), and the Peter and Jane series (I know they are awfully stereotyped, but very good for building up word recognition).
dd1 uses the P&J books in 2 ways: jsut readign through with her teacher, and also, her school have made up a work activity for her.
They have copied the pictures, and laminated (wouldnt be a SN school without laminating
), and ahve the words on PECS card type sqaures. dd1 has to build up the sentence for each picture.
They ahve also done this with pictures of us in various poses around familiar places, so it is easy to vary the sentence that needs to be built (so dd1 cannot just rely on her memory, which is excellent)
so two pronged, really: building up her recognition of common words and names of family members, and work on her building simple sentences (which are well within her langugae capabilities)
One thing I would say is that even 6 months ago, this was hopeless with dd1. she knew her alphabet and single phonics, but absolutely could not progress further.
whether progress now is due to concentrated efforts on this, or "just" becasue she has matured sufficiently for this now to be a possibility for her is impossible to say.