Reading to and with children is vital for their development from the earliest of ages. The love of books helps children be creative and stimulates their imagination. There is nothing better than sitting with your child for 10 minutes in the evening and sharing a book. Listen to them, read for them and with them, and talk about what you are reading. There are some great examples on YouTube of Michael Rosen reading aloud. I'd recommend having a look.
We use a variety of reading schemes to produce a range of reading experiences for all out children in school. The basis of the scheme is Oxford Reading Tree, but we supplement this with books from Jelly and Bean and various other schemes.
To teach phonics in Foundation and Key Stage 1 we use Read Write. Below are links to a series of useful videos explaining what exactly Read Write Inc is and how to help your child with phonics.