This article investigates the policy of setting that is commonly being seen as an organizational tool for effective delivery of the National Literacy Strategy (NLS). It is suggested that teachers are finding the increased amount of whole-class teaching to a diverse range of abilities, as prescribed by the NLS, problematic. This case-study researches both teachers' and children's perspectives on the Literacy Hour as taught in mixed-ability classes and in sets. Reflective commentaries and pupil questionnaires were used to collect data over two years. The results indicate a complex range of issues, both pedagogical and organizational, which need be considered before setting can be promoted as a strategy for literacy delivery. I conclude that there is a need for urgent research into the effectiveness of setting as a means of teaching the Literacy Hour.