The star has handed over the entirety of his £25k award prize money to the Music Venues Trust, which works to save the United Kingdom's independent music venues.
The star was awarded the award on mid-October as his third album People Watching was named the outstanding release of the past year.
The musician has opted to hand the money over to the Music Venues Trust, in acknowledgment of the vital role grassroots venues fulfilled in his beginning days.
"As an artist would not have achieved what I am doing today if it hadn't been for all the gigs I did around the region, and elsewhere, when I was starting out," remarked the artist. "These spaces are iconic, but they are struggling."
Since the start of 2023, over 150 of these spaces have ceased operations – about 16 percent of the total UK scene.
Recently, top acts such as Pulp, the group Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its efforts to help venues survive, by including a modest fee to their admission fees, which goes to help local stages.
Sam Fender also took part, collecting over £100k on his recent tour to help 38 grassroots venues across England, Scotland, and Wales.
The money supported spaces that were dealing with possible closure due to difficulties stemming from floods, blazes and family tragedies, as well as licensing issues, legal disputes and noise complaints.
Other venues were granted monetary aid in upgrading facilities and gear that directly benefitted musicians and fans.
"The notion that funds from shows in major spaces helps the independent spots, where it all starts for artists like me, is just sensible," Fender has commented.
He is among several artists to give his Mercury Prize funds to worthy causes.
In the band earned the prize in the mid-90s for their record their work, vocalist the singer stated that the group would give their cash to the organization War Child.
In 2002, musician Ms Dynamite divided her prize between a few charities, such as the NSPCC and a Sickle Cell organization.
"I also gave a thousand pounds to the center, to their gymnastics class, because I practiced gymnastics when I was younger and they lacked better apparatus," the artist shared with outlets.
Previously, the band gave their prize money to the local youth club that nurtured their group, as well as other independent music bodies.
And the 1994 recipients the group donated their winnings to a multiple sclerosis charity after a close contact was found to have the disease.
"The victory was sufficient," stated artist Heather Small. "The cash was the extra but we didn't need the bonus, because we had the cake. So our winning affected another person's life."
Recently, the MVT revealed it had saved several small stages in south-east England, by bringing them into community ownership.
The first in the city and the second in Bristol were acquired under the Own Our Venues program, which is backed by a national body and enthusiasts who purchase "ownership units" in the buildings.
