Steve Herbert has resigned as Victoria's Corrections Minister after using his taxpayer-funded driver to chauffeur his two dogs around.

The Upper House member for Northern Victoria said in a statement he would remain on the backbench but not contest the 2018 election.

Mr Herbert, who was also the training and skills minister, had been under pressure after it was revealed he used his ministerial car to drive Patch and Ted between his Melbourne home and country house in Trentham.

He said he tendered his resignation to Premier Daniel Andrews.

The Opposition had been calling on Mr Herbert to step down.

"Government is more important than any individual and I have been concerned that events over the past weeks have served as a distraction from the outstanding work of this government," Mr Herbert said.

He told the Parliament on Tuesday that he had organised his two dogs to be driven without him on one or two occasions but could not be more specific because the information was not included in the driver's travel logs.

He said he had paid back $192.80 in travel expenses for the trips and also donated $1,000 to an animal shelter in Woodend.

Gayle Tierney has been picked to take over both portfolios.

Complete failure of leadership, Opposition says

In a statement, Mr Andrews said Mr Herbert had "paid the price" for his mistake.

"Mr Herbert has reflected on his position and has decided it is appropriate that he step down and move to the backbench," he said.

"Mr Herbert has admitted an error of judgement and he is paying the price for that error."

Mr Herbert could not say how many times his driver had transported Patch and Ted. ( Twitter )

He also praised his efforts overseeing an overhaul to the state's TAFE and private training sector.

"He has had a profound impact on the lives of young Victorians, making sure they get the skills they need for the jobs they want," he said.

Opposition Leader Matthew Guy said the decision should have been made sooner.

"Daniel Andrews should have sacked Steve Herbert two weeks ago and not waited for his minister to resign," he said.

"This was a complete failure of leadership."

Government accused of 'burying' story on US election day

The Opposition used question time to attack the Government over the scandal, asking why it took two weeks for Mr Herbert to step aside.

Mr Guy accused the Government of trying to bury the news on the same day as the US election.

"Premier why did it take you two weeks for you to do what every Victorian knew you should have done a fortnight ago?" he asked in Parliament.

"Why has it taken so long for Steve Herbert to go?"

But Mr Andrews dismissed the idea it was timed with the US vote.

"The former minister ... made a serious error, he reflected on that error, he has made payments as he should, and he has tendered his resignation," Mr Andrews said.

Mr Guy said ombudsman Deborah Glass should investigate further but Mr Andrews replied that her office was independent and it was "a matter for her".