The artist has donated the full amount of his twenty-five thousand pound honor cash to the Music Venues Trust, which functions to preserve the Britain's grassroots live music spots.
He was given the prize on 16 October as his third album People Watching was chosen as the top album of the last 12 months.
The musician has opted to give the cash to the MVT, in recognition of the vital role local spots played in his beginning days.
"I couldn't be pursuing what I am doing today if it wasn't for all the shows I did around the region, and elsewhere, when I was starting out," stated Fender. "These locations are renowned, but they are facing challenges."
Beginning in 2023, more than 150 of these locations have ceased operations – roughly 16 percent of the whole industry in the UK.
In the last year, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by applying a small levy to their ticket prices, which benefits independent venues.
He also joined in, collecting more than £100,000 on his live tour to help 38 grassroots venues across England, Scotland, and Wales.
The money assisted venues that were facing imminent closure due to issues stemming from water damage, fires and personal losses, as well as regulatory hurdles, legal disputes and neighbor objections.
Additional spaces were granted financial assistance in modernizing amenities and sound and lighting systems that directly benefitted artists and fans.
"The notion that funds from shows in large arenas backs the smaller venues, where it all starts for musicians like me, is just sensible," Fender has commented.
He is not the first artist to give his Mercury Prize winnings to charitable organizations.
When the band earned the trophy in the year 1996 for their record Different Class, lead singer Jarvis Cocker declared that the act would give their winnings to the charity the charity.
During 2002, musician the artist shared her bounty across a few charities, like the NSPCC and a charity for Sickle Cell.
"And I donated a grand to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they needed new equipment," she shared with outlets.
In recent years, the band gave their winnings to the community center that developed their act, as well as other grassroots music organisations.
Additionally the 1994 recipients the group contributed their winnings to a multiple sclerosis charity after a close contact was found to have the disease.
"Receiving the award was quite enough," said singer the singer. "The cash was the extra but we didn't need the cherry, because we had the cake. So our winning affected the lives of others."
Last week, the MVT revealed it had rescued a couple of grassroots venues in that region, by bringing them into local control.
One venue in that area and the other in the city were acquired under the public acquisition initiative, which is backed by Arts Council England and enthusiasts who acquire "shares" in the buildings.
