Sam Fender has donated the full amount of his £25k award cash to the Music Venues Trust, which functions to protect the UK's small music venues.
The star was given the cheque on October 16 as his new release his work was chosen as the outstanding release of the past year.
Fender has decided to give the cash to the trust, in recognition of the vital role small stages had in his beginning days.
"I personally wouldn't be doing my current career if it hadn't been for all the gigs I performed around the region, and elsewhere, when I was just getting going," said Sam Fender. "These venues are legendary, but they are struggling."
Beginning in 2023, over 150 of these locations have permanently closed – about 16% of the whole industry in the UK.
In the last year, major artists including Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all backed the Music Venues Trust in its initiatives to support the industry, by applying a modest fee to their ticket prices, which benefits smaller concert halls.
Sam Fender also took part, collecting more than £100,000 on his 2024 arena tour to assist 38 small stages across Britain.
These funds assisted spaces that were confronting potential shutdown due to challenges arising from floods, blazes and bereavements, as well as licensing issues, conflicts and neighbor objections.
Additional spaces obtained monetary aid in upgrading infrastructure and technical equipment that directly benefitted artists and audiences.
"The idea that money from performances in large arenas helps the local stages, where it begins for performers like me, is just logical," the star has stated.
He is far from the only musician to give his Mercury Prize funds to good deeds.
In Pulp won the prize in 1996 for their record Different Class, lead singer the singer announced that the band would contribute their cash to the charity War Child.
That year, musician she shared her award between a few charities, such as the children's charity and a Sickle Cell organization.
"And I donated a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was a child and they needed new equipment," Ms Dynamite shared with the media.
In recent years, they contributed their winnings to the community center that supported their act, in addition to other grassroots music organisations.
Also winners that year they gave their award to a charity for MS after a acquaintance was identified with the disease.
"Receiving the award was sufficient," said vocalist Heather Small. "The money was the extra but we could do without the bonus, because we had the cake. So our success affected the lives of others."
In the past week, the trust announced it had saved several small stages in that region, by placing them under local control.
One venue in that area and The Croft in the city were acquired under the public acquisition program, which is funded by Arts Council England and music fans who buy "ownership units" in the properties.