Sam Fender has donated the full amount of his £25k award cash to the Music Venues Trust, which works to protect the UK's small music venues.
Fender was given the award on 16 October as his latest record the album was named the outstanding release of the previous year.
The musician has decided to give the cash to the Music Venues Trust, in acknowledgment of the vital role grassroots venues fulfilled in his early career.
"As an artist couldn't be pursuing this success if it weren't for all the shows I did around the area, and elsewhere, when I was just getting going," said Fender. "These spaces are legendary, but they are struggling."
Since the start of 2023, at least 150 of these spaces have shut down – roughly 16% of the total UK scene.
In the last year, top acts like Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its efforts to help venues survive, by applying a small levy to their ticket prices, which benefits independent venues.
He also participated, collecting over £100k on his 2024 arena tour to support thirty-eight small stages across Britain.
The money helped spaces that were facing imminent closure due to challenges stemming from water damage, fire incidents and personal losses, as well as regulatory hurdles, legal disputes and sound issues.
Additional spaces received financial assistance in modernizing facilities and technical equipment that directly benefitted artists and audiences.
"The idea that money from shows in major spaces supports the smaller venues, where it all starts for performers like me, is just common sense," Sam Fender has said.
He is not the first artist to contribute his Mercury Prize prize money to good deeds.
When Pulp earned the award in 1996 for their release their work, frontman Cocker stated that the act would donate their winnings to the charity War Child.
During 2002, artist she split her bounty among multiple organizations, such as the NSPCC and a charity for Sickle Cell.
"I also donated a grand to my local community centre, to their gymnastics class, because I practiced gymnastics when I was a child and they required updated gear," she shared with a publication.
Two years ago, the band donated their prize money to the local youth club that nurtured their act, alongside other independent music bodies.
Also winners that year M People donated their winnings to a multiple sclerosis charity after a close contact was found to have the condition.
"Receiving the award was ample," said artist Heather Small. "The prize was the bonus but we didn't require the bonus, because we had the cake. So our victory touched somebody else's life."
Last week, the MVT revealed it had saved a couple of local spots in the South East, by placing them under public stewardship.
One venue in Southampton and the other in that location were purchased under the community ownership initiative, which is supported by the arts council and supporters who acquire "shares" in the buildings.