This paper reports on research in progress that acknowledges and builds on seminal research in the area of home and community literacies and the ways in which schools support or devalue particular literacies and discourses to the advantage or disadvantage of young children. Recently there have been renewed calls for schools to acknowledge and build on home and community literacies In particular, the NSW Disadvantaged Schools Program (DSP) argues for home school congruence as a pathway to improved literacy outcomes in schools serving poor communities. However, despite the DSP's recognition of home-school congruence as a key aspect for schools to consider when they work on improved student literacy outcomes, it remains an area that requires further empirical and subsequent pedagogical clarification. So it is clear that at both research and policy levels, there are critical research issues to consider around school literacy practices that recognise, value, describe and utilise home literacies. This paper identifies and takes up important issues around home school congruence in DSP school contexts and their implications for the teaching of literacy.