A novel intervention was developed to teach reading and spelling literacy to 5 to 7 year-old students using explicit instruction of morphology, etymology, phonology, and form rules. We examined the effects of the intervention compared to a phonics-based condition using a cross-over design with a baseline measure. One hundred and twenty children attending an English state funded primary school were randomly allocated either to a traditional phonics condition followed by the novel intervention, or to the novel intervention followed by the phonics condition. The novel intervention significantly improved the literacy skills of the children including both word reading and spelling compared with the phonics condition. We conclude that early teaching of English literacy should include instruction in morphology, etymology and rules about form in addition to traditional phonics. We suggest that the results of the study could inform future policy on the teaching of English literacy skills. (Contains 4 figures and 6 tables.)