So you need to test the reading ability of your pupils ? There are a huge range of literacy tests available for different purposes.
Adult assessments are becoming more popular in the commercial / business sector as businesses want to screen and test the literacy ability of their employees. For example, in the UK it is a requirement that all applicant to teacher training now site a basic skills test which includes a reading component.
A National Phonics Check for children near the end of their first year in primary school in England has been introduced with the test being started across all primary schools by Summer 2012 :
http://www.bbc.co.uk/news/education-14941643
But this test has faced some criticism :
http://news.bbc.co.uk/today/hi/today/newsid_9592000/9592609.stm