Council's in-home day care service in Wangaratta will transition from being council-run to another provider within weeks after it was deemed financially unviable to continue.

The change, effective from 1 January, follows a steady decline in the number of educators over the years, leading the scheme to operate at a substantial financial loss.

The service supports eight educators and about 40 families within both the Rural City of Wangaratta and Indigo Shire areas.

Council’s priority is to provide families and educators with as much notice as possible and to support a smooth transition.

Marcus Goonan, director - community & infrastructure, explained that about four years ago they had up to 18 educators on the books.

"That number has slowly dwindled and this is a volume game - without the previous scale it has become unviable," he said.

"This does not mean that the service stops and educators will be offered a position with another provider and if they choose to take that up, there's no impact to the educator or the families.

"There's a provider, who current works through a number of municipalities around us, showing an interest in taking on the educators if they wish to move over.

"At least two of the educators were also planning to retire this year leaving four in Wangaratta, one in Wahgunyah and one in Rutherglen."

Mr Goonan said there is demand for day care and a waiting list but with the decline in educators it's certainly an area that is declining in popularity.

He said council understands this decision will affect families and educators who have been part of their North East Family Day Care community.

"Our focus is on ensuring a smooth transition and providing support wherever possible," Mr Goonan said.

"We are committed to helping families find suitable care options, including the possibility of accommodating some children within our existing children’s services centre.

"Educators can continue operating their own business from their home, but they must be registered under a different approved Family Day Care scheme.”

An information session will be held in the coming weeks for educators to learn about opportunities.

Onboarding sessions will follow for those families who choose to transition.

"We acknowledge the important role North East Family Day Care has played in our community and thank our educators and families for their commitment and support over

the years," Mr Goonan said.

For more information visit www.wangaratta.vic.gov.au/Services/Families-and-Children/North-East-Family-Day-Care