Children in England read less outside school and the performance of bright youngsters has dropped since 2001, according to an international research report published today.

The Progress in International Reading Literacy Study (Pirls) showed that the amount of reading overall outside school has fallen since the last study, six years ago.

More than a third (37%) of 10-year-olds in England play computer games for more than three hours a day, the study found. This represents an increase since 2001 and one of the highest proportions internationally, and researchers found a link between high use of computer games and lower attainment in reading and literacy.

According to the report, England still scores well above the international average, but has fallen since 2001 and the lower achievement of better readers has had the most influence on the overall fall.

England has dropped from third to 19th in the international reading literacy league table since 2001, with an average scale score of 539. The Russian Federation got the highest score of 565 and South Africa the lowest of 302. Of the 10 highest achieving countries in the last survey in 2006, seven fell while three rose.

Only 33% of children in England and Scotland read for pleasure, compared with the international average of 40%. There is a strong link between this and their achievement in Pirls tests.

The children's secretary, Ed Balls, said: "This study shows that our highest achieving children are reading less, with children's busy days leaving less time for books at home. As parents we have to get the balance right and as a society we have to send the right messages about the value of reading to our children."

He said next year's National Year of Reading would provide help and encouragement for parents and children.

Researchers in 41 countries and regions tested 215,000 10-year-olds on their reading and writing skills and quizzed them on their reading habits, including how many books they have at home.

They were asked who had helped them to learn to read and how much they read at home and in school. Researchers from the National Foundation for Educational Research conducted the study in 150 schools in England and 130 more in Scotland in May and June 2006.

A total of 4,036 pupils in England took part and 3,775 in Scotland. The research was funded by the Department for Children, Schools and Families, and the Scottish executive.

Teachers in the survey reported a level of job satisfaction that was around the international average - teachers of 70% of the pupils were very satisfied with their current teaching post.

In almost all countries, including England, girls achieved significantly higher mean scores than boys. In England girls' performance fell slightly more than boys' but both fell significantly since 2001.

Shadow children's secretary Michael Gove said: "This is the second report in a month by academic experts underlining the failure of the government's reading plans.

"We are falling dangerously behind other countries and we know that those from the poorest backgrounds are suffering most. It's time the government stopped blaming parents and accepted the case we've been making for a new focus on teaching reading using tried and tested methods, with a test after two years in primary school to ensure our children are being taught properly."

Liberal Democrat shadow children's secretary David Laws said ministers should be ashamed that England has plummeted down the international league table:

"Despite the success of books like Harry Potter, there is still a worryingly large group of our young people who have absolutely no interest in reading.

"We have to ensure that youngsters can not only read and write but that schools and parents breathe enjoyment back into what otherwise can be a rigid programme of learning."