The star has handed over the full amount of his £25k honor prize money to the MVT, which works to save the UK's independent live music spots.
He was awarded the award on October 16 as his latest record his work was declared the top album of the last 12 months.
The musician has chosen to give the cash to the MVT, in acknowledgment of the essential function grassroots venues played in his early career.
"As an artist couldn't be pursuing this success if it weren't for all the gigs I performed around the area, and elsewhere, when I was just getting going," said the artist. "These spaces are legendary, but they are struggling."
Since the start of 2023, more than 150 of these spaces have permanently closed – roughly 16 percent of the total UK scene.
Recently, well-known musicians like the band Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its efforts to keep the scene afloat, by including a minor surcharge to their ticket prices, which goes to help local stages.
He also joined in, collecting in excess of £100,000 on his 2024 arena tour to support thirty-eight small stages across England, Scotland, and Wales.
These funds helped spaces that were facing possible closure due to challenges arising from flooding, blazes and family tragedies, as well as regulatory hurdles, legal disputes and sound issues.
Some locations were granted monetary aid in improving facilities and gear that directly benefitted artists and audiences.
"The concept that revenue from performances in big venues backs the independent spots, where it all starts for musicians like me, is just logical," Fender has commented.
He is among several artists to give his Mercury Prize prize money to worthy causes.
Back when the band won the prize in the mid-90s for their release their work, vocalist Cocker stated that the act would donate their winnings to the non-profit the charity.
During 2002, rapper and singer the artist divided her prize between several organizations, such as the children's charity and a Sickle Cell charity.
"I also contributed a grand to the center, to their gymnastics program, because I did gymnastics when I was younger and they needed better apparatus," Ms Dynamite told the media.
Two years ago, Ezra Collective gave their winnings to the community center that developed their act, in addition to other local music groups.
And winners that year they gave their award to a MS organization after a close contact was diagnosed the condition.
"Receiving the award was quite enough," stated vocalist the singer. "The cash was the bonus but we didn't require the cherry, because we had the cake. So our winning touched the lives of others."
In the past week, the MVT shared it had protected a couple of local spots in south-east England, by placing them under community ownership.
One venue in Southampton and The Croft in that location were purchased under the community ownership scheme, which is backed by a national body and supporters who purchase "ownership units" in the properties.