The artist has handed over the full amount of his twenty-five thousand pound award winnings to the Music Venues Trust, which operates to preserve the United Kingdom's small live music spots.
He was awarded the award on 16 October as his third album his work was chosen as the outstanding release of the previous year.
The musician has opted to donate the funds to the Music Venues Trust, in appreciation of the vital role small stages played in his initial steps.
"As an artist couldn't be pursuing my current career if it wasn't for all the performances I did around the region, and further afield, when I was starting out," stated the artist. "These locations are renowned, but they are struggling."
Since the start of 2023, more than 150 of these locations have ceased operations – about 16% of the entire UK sector.
Recently, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its attempts to help venues survive, by adding a small levy to their admission fees, which supports independent venues.
He also took part, collecting over £100k on his live tour to help 38 grassroots venues across England, Scotland, and Wales.
The money supported venues that were confronting imminent closure due to challenges arising from flooding, fires and bereavements, as well as permit problems, conflicts and sound issues.
Additional spaces received monetary aid in improving infrastructure and sound and lighting systems that positively impacted artists and concertgoers.
"The idea that revenue from concerts in major spaces supports the local stages, where it begins for musicians like me, is just common sense," Fender has stated.
He is among several artists to contribute his Mercury Prize prize money to good deeds.
In the band earned the trophy in the mid-90s for their album Different Class, vocalist the singer declared that the act would give their winnings to the organization War Child.
During 2002, rapper and singer the artist divided her bounty among a few good causes, such as the children's charity and a charity for Sickle Cell.
"Additionally, I gave a £1,000 to the center, to their gymnastics program, because I trained in gymnastics when I was younger and they lacked new equipment," the artist told a publication.
Previously, Ezra Collective contributed their prize money to the local youth club that nurtured their act, in addition to other independent music bodies.
Also the 1994 recipients M People contributed their award to a charity for MS after a close contact was found to have the condition.
"Receiving the award was quite enough," stated vocalist Small. "The money was the bonus but we could do without the cherry, because we had the honor. So our victory impacted somebody else's life."
In the past week, the Music Venues Trust revealed it had saved several local spots in south-east England, by transferring them to local control.
The Joiners in the city and the other in Bristol were bought under the public acquisition program, which is backed by the arts council and enthusiasts who buy "stakes" in the buildings.