The National Literacy Trust's research during the first national lockdown in spring 2020 showed that more children and young people said that they enjoyed reading and more read more often during lockdown compared with before the pandemic. Children and young people's comments suggested that this was because they suddenly had time to (re)engage with reading, having fewer activities vying for their time. However, researchers also found that existing gaps in reading enjoyment increased manifold during lockdown, with boys in particular at risk of poor reading engagement as a result of the pandemic. This report builds on those findings by highlighting how children and young people felt about reading in early 2021, a period that coincided with the third national lockdown in the United Kingdom. The National Literacy Trust conducted its latest Annual Literacy Survey between January and mid-March 2021. Despite the ongoing pandemic and disruptions to schools, 42,502 children and young people aged 8 to 18 from 117 UK schools participated in this online survey. Key findings include: (1) 1 in 2 (51.5%) children and young people said that they enjoyed reading; (2) 3 in 10 (30.1%) children and young people said in 2021 that they read something daily in their free time, which is lower than the level recorded during the first national lockdown in spring 2020 but on a par with levels evidenced in early 2020; (3) Reading to relax was one of the main reasons why children and young people were reading in early 2021; (4) 2 in 5 (44.6%) children and young people agreed that reading made them feel better; and (5) By far the most popular reading that children and young people do in their free time is text/direct messages (92.4%) followed by in-game communications (87.4%).