I despise schools that discuss funding in the same breathe as a child's needs. Schools receive funding for every child in the school, they receive additional funding for every child on School Action or School Action Plus and with regard to Statemented children, how they fund Statements may vary from Authority to Authority but once the support allocated is over a certain level they receive additional funds. To be honest, I'm not completely au fait with how the funding thing works but if it's a particular bugbear, you can ask to speak to your Special Educational Needs and ask them about it, or they can put you through to the right person who can explain it to you - you could also to speak to one of the school governors.
Have you spoken to the SENCO about literacy groups? They must have them in action in the school, she may also know of any after school groups that would be of interest but I would definitely speak to the Educational Psychology Service - it's their job to assess your child & your school should at least have arranged that. Your local Parent Partnership group may also have after school groups that your child can attend.