The star has donated the full amount of his £25k honor winnings to the Music Venues Trust, which operates to preserve the UK's grassroots live music spots.
Fender was awarded the award on October 16 as his third album People Watching was named the best record of the previous year.
He has chosen to give the cash to the MVT, in acknowledgment of the essential function grassroots venues played in his early career.
"I couldn't be pursuing my current career if it wasn't for all the shows I performed around the area, and beyond, when I was starting out," said Fender. "These locations are legendary, but they are struggling."
Beginning in 2023, over 150 of these venues have permanently closed – roughly one-sixth of the entire UK sector.
In the last year, top acts such as Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all aided the trust in its attempts to support the industry, by applying a small levy to their admission fees, which goes to help independent venues.
He also participated, collecting more than £100,000 on his 2024 arena tour to help thirty-eight local spots across England, Scotland, and Wales.
The money helped locations that were facing imminent closure due to issues caused by flooding, fires and family tragedies, as well as regulatory hurdles, legal disputes and neighbor objections.
Other venues were granted monetary aid in modernizing infrastructure and gear that directly benefitted performers and fans.
"The idea that money from concerts in large arenas supports the independent spots, where it all starts for performers like me, is just common sense," Fender has said.
He is not the first artist to contribute his Mercury Prize funds to good deeds.
In Pulp earned the award in the mid-90s for their album their work, vocalist Jarvis Cocker declared that the group would contribute their prize money to the organization War Child.
During 2002, rapper and singer the artist split her award between several charities, like the children's charity and a charity for Sickle Cell.
"Additionally, I gave a grand to my local community centre, to their gymnastics program, because I did gymnastics when I was growing up and they lacked updated gear," Ms Dynamite shared with outlets.
Two years ago, they donated their winnings to the community center that developed their act, as well as other independent music bodies.
And winners that year M People donated their prize to a charity for MS after a acquaintance was found to have the condition.
"Winning was sufficient," stated vocalist Heather Small. "The cash was the cherry on top but we could do without the extra, because we had the main prize. So our victory touched the lives of others."
Last week, the trust revealed it had saved a couple of local spots in the South East, by placing them under community ownership.
The first in that area and The Croft in the city were bought under the community ownership program, which is backed by a national body and enthusiasts who buy "ownership units" in the buildings.
