The artist has donated the entirety of his £25k award cash to the trust for venues, which works to preserve the Britain's independent concert spaces.
The star was awarded the cheque on 16 October as his new release the album was chosen as the best record of the last 12 months.
Fender has decided to donate the funds to the Music Venues Trust, in recognition of the crucial part local spots played in his beginning days.
"I couldn't be pursuing my current career if it hadn't been for all the gigs I did around the area, and elsewhere, when I was beginning," remarked the artist. "These venues are iconic, but they are struggling."
From early 2023 onward, at least 150 of these spaces have permanently closed – roughly one-sixth of the total UK scene.
In the last year, well-known musicians including the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its attempts to support the industry, by adding a small levy to their ticket prices, which goes to help independent venues.
Fender also participated, raising in excess of £100,000 on his live tour to support numerous local spots across England, Scotland, and Wales.
These funds helped spaces that were dealing with potential shutdown due to challenges stemming from flooding, fires and personal losses, as well as licensing issues, legal disputes and sound issues.
Some locations received monetary aid in improving amenities and technical equipment that positively impacted performers and fans.
"The concept that money from concerts in major spaces supports the smaller venues, where it all starts for musicians like me, is just sensible," the star has commented.
He is far from the only musician to give his Mercury Prize prize money to worthy causes.
When Pulp received the trophy in the mid-90s for their album the album, vocalist Jarvis Cocker declared that the act would donate their cash to the charity War Child.
In 2002, artist Ms Dynamite split her prize across multiple organizations, such as the NSPCC and a Sickle Cell organization.
"I also contributed a £1,000 to my local community centre, to their classes, because I trained in gymnastics when I was growing up and they required new equipment," Ms Dynamite shared with outlets.
Previously, they gave their winnings to the local youth club that nurtured their act, alongside other grassroots music organisations.
Additionally 1994 winners the group contributed their prize to a charity for MS after a close contact was found to have the disease.
"Receiving the award was ample," remarked singer Small. "The prize was the bonus but we didn't need the cherry, because we had the honor. So our winning impacted the lives of others."
Recently, the Music Venues Trust announced it had saved several grassroots venues in the South East, by placing them under local control.
The Joiners in Southampton and the other in the city were purchased under the public acquisition program, which is backed by Arts Council England and supporters who buy "ownership units" in the buildings.
