Sam Fender has donated the full amount of his £25k honor cash to the MVT, which operates to save the Britain's small music venues.
He was given the cheque on 16 October as his latest record People Watching was named the top album of the past year.
Fender has chosen to donate the funds to the MVT, in acknowledgment of the crucial part small stages had in his early career.
"As an artist couldn't be pursuing my current career if it hadn't been for all the shows I did around the region, and elsewhere, when I was starting out," said Sam Fender. "These spaces are iconic, but they are in difficulty."
Since the start of 2023, at least 150 of these spaces have ceased operations – approximately 16 percent of the entire UK sector.
In the last year, top acts like the band Pulp, the group Coldplay, Katy Perry and Sheeran have all supported the trust in its initiatives to keep the scene afloat, by applying a small levy to their ticket costs, which goes to help smaller concert halls.
He also participated, collecting in excess of £100,000 on his 2024 arena tour to assist thirty-eight local spots across England, Scotland, and Wales.
The money helped venues that were facing imminent closure due to difficulties stemming from water damage, fires and family tragedies, as well as licensing issues, conflicts and noise complaints.
Other venues obtained financial assistance in improving infrastructure and gear that helped artists and concertgoers.
"The concept that revenue from shows in major spaces supports the independent spots, where it kicks off for musicians like me, is just sensible," Sam Fender has stated.
The musician is far from the only musician to give his Mercury Prize funds to good deeds.
In they earned the award in 1996 for their record their work, lead singer Jarvis Cocker declared that the band would contribute their prize money to the organization War Child.
In 2002, musician Ms Dynamite divided her prize among several charities, including the children's charity and a Sickle Cell charity.
"And I donated a £1,000 to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was growing up and they required better apparatus," Ms Dynamite shared with the media.
Previously, Ezra Collective contributed their funds to the local youth club that developed their act, alongside other grassroots music organisations.
Also the 1994 recipients M People contributed their winnings to a charity for MS after a acquaintance was diagnosed the condition.
"The victory was ample," said vocalist the singer. "The prize was the bonus but we could do without the cherry, because we had the cake. So our victory touched another person's life."
Last week, the trust revealed it had saved two small stages in that region, by bringing them into local control.
One venue in that area and the other in Bristol were bought under the public acquisition initiative, which is funded by a national body and supporters who acquire "stakes" in the venues.