The artist has donated the full amount of his twenty-five thousand pound honor prize money to the Music Venues Trust, which works to protect the UK's independent music venues.
The star was awarded the prize on 16 October as his new release the album was chosen as the best record of the previous year.
The musician has decided to donate the funds to the Music Venues Trust, in acknowledgment of the vital role local spots played in his early career.
"I personally couldn't be pursuing this success if it weren't for all the shows I played around the area, and elsewhere, when I was just getting going," said the artist. "These spaces are legendary, but they are in difficulty."
From early 2023 onward, at least 150 of these spaces have ceased operations – about one-sixth of the total UK scene.
Recently, well-known musicians like the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the MVT in its efforts to help venues survive, by applying a minor surcharge to their admission fees, which supports smaller concert halls.
Sam Fender also took part, collecting in excess of £100,000 on his live tour to assist numerous small stages across Britain.
The money supported venues that were confronting imminent closure due to issues caused by water damage, fires and personal losses, as well as licensing issues, conflicts and noise complaints.
Other venues were granted monetary aid in modernizing facilities and sound and lighting systems that helped artists and audiences.
"The concept that revenue from shows in large arenas helps the local stages, where it kicks off for artists like me, is just logical," Fender has stated.
The musician is not the first artist to contribute his Mercury Prize winnings to good deeds.
In Pulp earned the prize in 1996 for their record Different Class, frontman Jarvis Cocker declared that the band would contribute their winnings to the charity War Child.
In 2002, artist she shared her bounty among a few good causes, like the NSPCC and a Sickle Cell charity.
"Additionally, I donated a thousand pounds to Highgate Newtown, to their classes, because I practiced gymnastics when I was growing up and they needed updated gear," Ms Dynamite told a publication.
Two years ago, Ezra Collective donated their winnings to the community center that supported their group, alongside other local music groups.
Additionally winners that year the group contributed their award to a MS organization after a friend was found to have the illness.
"The victory was quite enough," stated artist the singer. "The money was the bonus but we could do without the bonus, because we had the honor. So our winning affected the lives of others."
Last week, the MVT shared it had saved a couple of local spots in the South East, by transferring them to community ownership.
The Joiners in Southampton and the second in the city were acquired under the Own Our Venues program, which is supported by Arts Council England and music fans who buy "shares" in the venues.