Sam Fender has donated the full amount of his £25,000 award winnings to the Music Venues Trust, which works to save the Britain's small concert spaces.
He was awarded the award on 16 October as his latest record the album was declared the outstanding release of the previous year.
The musician has decided to donate the funds to the trust, in acknowledgment of the crucial part small stages played in his beginning days.
"I personally would not have achieved my current career if it weren't for all the performances I played around the North East, and further afield, when I was beginning," remarked the artist. "These locations are renowned, but they are struggling."
Since the start of 2023, more than 150 of these spaces have permanently closed – approximately 16% of the whole industry in the UK.
In the last year, well-known musicians including Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the Music Venues Trust in its attempts to keep the scene afloat, by applying a minor surcharge to their ticket costs, which goes to help local stages.
Sam Fender also joined in, generating more than £100,000 on his 2024 arena tour to assist numerous small stages across the UK.
These funds assisted venues that were confronting imminent closure due to difficulties caused by floods, fire incidents and personal losses, as well as licensing issues, conflicts and noise complaints.
Additional spaces received monetary aid in upgrading amenities and sound and lighting systems that positively impacted musicians and audiences.
"The concept that funds from shows in big venues backs the independent spots, where it all starts for artists like me, is just logical," Fender has stated.
The musician is not the first artist to give his Mercury Prize funds to good deeds.
When the band earned the award in the mid-90s for their record the album, vocalist Jarvis Cocker declared that the group would contribute their cash to the organization War Child.
In 2002, rapper and singer she split her award among several charities, including the NSPCC and a charity for Sickle Cell.
"I also gave a thousand pounds to the center, to their classes, because I practiced gymnastics when I was growing up and they lacked new equipment," Ms Dynamite explained to outlets.
Previously, Ezra Collective gave their funds to the youth organization that developed their act, alongside other independent music bodies.
And winners that year M People contributed their prize to a MS organization after a close contact was identified with the illness.
"Winning was ample," said artist Small. "The prize was the bonus but we didn't require the extra, because we had the main prize. So our victory impacted another person's life."
In the past week, the Music Venues Trust revealed it had rescued two grassroots venues in south-east England, by placing them under public stewardship.
One venue in that area and the second in that location were acquired under the community ownership initiative, which is backed by Arts Council England and enthusiasts who purchase "stakes" in the venues.