This report outlines findings from Pearson and the National Literacy Trust's second annual early years literacy survey, conducted in May to July 2014. 1,012 parents of children aged 3 to 5 and 567 early years practitioners who work with this age group participated. Attainment data in the form of vocabulary abilities were available for a subsample of 183 children. The report not only examines children's access to books and to technology, as well as their early reading habits, but it also examines the impact of these practices on young children's vocabulary. Within this report we seek to answer the following key questions: How often do children look at or read stories at home and in early years settings, and what is the impact on children's vocabulary? How do parents support their children in story-related activities? Are there differences in engagement in reading activities at home and vocabulary outcomes for children from different socioeconomic backgrounds or by gender? Does looking at or sharing stories using technology provide any additional benefit to children? What are the key changes between 2013 and 2014? (author abstract)