The artist has donated the complete sum of his £25k award cash to the Music Venues Trust, which operates to preserve the Britain's grassroots concert spaces.
Fender was presented with the prize on mid-October as his third album the album was chosen as the best record of the last 12 months.
The musician has decided to hand the money over to the Music Venues Trust, in acknowledgment of the vital role grassroots venues had in his early career.
"As an artist wouldn't be doing my current career if it hadn't been for all the gigs I performed around the area, and elsewhere, when I was just getting going," stated the artist. "These venues are iconic, but they are in difficulty."
Since the start of 2023, at least 150 of these spaces have ceased operations – approximately 16% of the whole industry in the UK.
Over the past year, well-known musicians such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its efforts to support the industry, by applying a minor surcharge to their ticket prices, which goes to help smaller concert halls.
He also participated, generating more than £100,000 on his recent tour to help 38 grassroots venues across the UK.
These funds helped venues that were facing imminent closure due to difficulties caused by flooding, fire incidents and family tragedies, as well as regulatory hurdles, legal disputes and sound issues.
Some locations were granted funding support in improving facilities and technical equipment that positively impacted artists and fans.
"The idea that money from concerts in large arenas helps the smaller venues, where it begins for artists like me, is just common sense," the star has said.
He is among several artists to donate his Mercury Prize prize money to worthy causes.
When they received the prize in the year 1996 for their album their work, frontman Jarvis Cocker stated that the group would give their prize money to the non-profit the charity.
During 2002, artist Ms Dynamite split her award between multiple charities, like the NSPCC and a Sickle Cell organization.
"I also gave a grand to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was younger and they needed better apparatus," Ms Dynamite explained to outlets.
Previously, Ezra Collective gave their winnings to the youth organization that supported their act, alongside other local music groups.
Additionally 1994 winners M People gave their prize to a MS organization after a friend was diagnosed the disease.
"Receiving the award was ample," stated artist the singer. "The money was the cherry on top but we could do without the extra, because we had the cake. So our winning impacted another person's life."
In the past week, the trust revealed it had saved a couple of grassroots venues in that region, by placing them under public stewardship.
One venue in the city and the second in that location were purchased under the community ownership program, which is funded by the arts council and enthusiasts who buy "stakes" in the buildings.
