7 (almost 8) year old boy with reading problems, looking for a teachers advice.?

so basically i am nannying a 7 almost 8 year old boy, he is about to be held back in the first grade for the second time, this is because of his reading skills. apparently at the end of the school year he was at a "1.3" reading level and he needs to be a "2.3" reading level in order to move onto the second grade. the main issues he has are with scrambling letters such as saying "who" when the word is "how" or "there" when the word is "three" sometimes he starts in the middle of a word, things like "never" and he'll say "veren", he will often just say words that might sound ok in context, things like "a" and "the" "at" "in", if you tell him its wrong he will get it right the next time. sometimes he will say words that don't look ANYTHING like the word given, like today he kept saying "huggle" instead of "grummble" he just guesses, sometimes he will say a word that makes sense sort of in context, but is the completely wrong word, things like saying "juggle feet" when he's supposed to say "trick feet". he has a hard time paying attention and most anything you say he will not remember, i can correct him literally 8 times in a row (not throughout the book, at the same time) and he will still say it incorrectly. i have been working with him for an hour everyday the entire summer, he is doing better, but im worried he still won't make it into the second grade, in which case he won't graduate until he's 20 :/ is there anything his mom can say to the teacher to get him re tested?