The British Government have not ignored it; it's official policy, and all primary schools in the state sector are expected to include it as part oftheir approach to literacy. I agree to some extent with Paul Burke, in that there has to be some flexibility in the way you teach reading; most kids will respond well to phonics, so this is fine for the 'mainstream' method, but there need to be other methods available for those who don't take to phonics.
Tim