The greater the difference is between the reading skills and the playing skills, the greater the challenge for the teacher, unfortunately. You have to make it look like you are teaching them "new " things. Often they have not been taught properly' how to use the pedal. A good opportunity to find the easiest pieces with broken chord formations and teach them to use the pedal, after dealing with notes first of course, and say that the pieces must be easy, otherwise they would be too hard for learning the pedal. In Thompson:Grade one studies" there are two such studies, and they sound nice too. Look for more of the same kind, from attractive study books, copy them in a special folder, so the students cannot see, from which book they come.
Find other deficiencies in their technique and find easy read studies to fix that. Again you can pretend, it is for a certain purpose,you do not have to say, that reading easy material is good for them. Students and their parents do not like to be "put back".
I would try the Microjazz pieces (Christopher Norton) also, good for rhythm and notes, there are not too many notes in those at the simplest level. They probably have not played that sort of music and that age group usually likes it. I am talking grade 1 and below, if you take the easiest ones.
Last but not least, the easiest sightreading books, you can find. That will be a totally new game for them, no doubt. Cover up the notes as you go, forcing them to look ahead. You have to start at rockbottom level. Again, if that is a "new" activity, they should not object. Definitely no more rote-learning. Good luck with that. Vera.