The artist has donated the full amount of his £25k honor cash to the Music Venues Trust, which operates to save the Britain's independent live music spots.
The star was presented with the prize on mid-October as his third album People Watching was declared the outstanding release of the previous year.
He has decided to give the cash to the Music Venues Trust, in acknowledgment of the vital role small stages played in his initial steps.
"As an artist would not have achieved what I am doing today if it hadn't been for all the shows I played around the region, and further afield, when I was just getting going," stated the artist. "These venues are iconic, but they are facing challenges."
Since the start of 2023, at least 150 of these locations have ceased operations – roughly 16 percent of the entire UK sector.
Recently, well-known musicians like the band Pulp, the group Coldplay, Katy Perry and Sheeran have all backed the trust in its efforts to help venues survive, by applying a minor surcharge to their ticket costs, which goes to help independent venues.
He also took part, raising over £100k on his live tour to help thirty-eight small stages across Britain.
The money supported spaces that were dealing with imminent closure due to difficulties stemming from water damage, blazes and personal losses, as well as regulatory hurdles, court cases and neighbor objections.
Additional spaces obtained monetary aid in modernizing infrastructure and sound and lighting systems that directly benefitted performers and concertgoers.
"The concept that funds from performances in big venues helps the local stages, where it kicks off for artists like me, is just logical," the star has stated.
Fender is among several artists to give his Mercury Prize prize money to good deeds.
When they won the award in the mid-90s for their release Different Class, frontman Cocker announced that the act would give their cash to the charity War Child.
During 2002, rapper and singer Ms Dynamite divided her bounty across multiple organizations, including the NSPCC and a Sickle Cell charity.
"Additionally, I contributed a thousand pounds to the center, to their gymnastics program, because I trained in gymnastics when I was a child and they lacked updated gear," the artist told the media.
In recent years, Ezra Collective gave their funds to the youth organization that nurtured their act, as well as other grassroots music organisations.
Additionally 1994 winners M People gave their award to a multiple sclerosis charity after a close contact was diagnosed the condition.
"Winning was ample," stated singer Heather Small. "The cash was the bonus but we didn't need the cherry, because we had the main prize. So our victory touched another person's life."
In the past week, the trust revealed it had protected several small stages in south-east England, by placing them under local control.
The Joiners in the city and The Croft in that location were bought under the community ownership scheme, which is backed by a national body and music fans who buy "ownership units" in the venues.
