Sam Fender has handed over the full amount of his £25,000 award cash to the Music Venues Trust, which works to save the Britain's small music venues.
He was given the cheque on mid-October as his latest record the album was named the best record of the past year.
He has chosen to donate the funds to the Music Venues Trust, in recognition of the crucial part small stages fulfilled in his beginning days.
"I personally couldn't be pursuing my current career if it weren't for all the shows I did around the North East, and further afield, when I was just getting going," said the artist. "These spaces are iconic, but they are facing challenges."
Beginning in 2023, at least 150 of these locations have permanently closed – about 16 percent of the total UK scene.
Recently, well-known musicians including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to help venues survive, by adding a modest fee to their admission fees, which benefits smaller concert halls.
He also joined in, generating over £100k on his live tour to assist 38 small stages across the UK.
The money supported spaces that were confronting possible closure due to challenges arising from floods, blazes and family tragedies, as well as licensing issues, legal disputes and sound issues.
Some locations obtained monetary aid in improving amenities and gear that directly benefitted artists and fans.
"The concept that revenue from concerts in big venues backs the local stages, where it begins for artists like me, is just sensible," Fender has stated.
Fender is far from the only musician to contribute his Mercury Prize funds to worthy causes.
Back when the band won the prize in the year 1996 for their release the album, frontman Cocker stated that the group would give their cash to the non-profit War Child.
That year, rapper and singer Ms Dynamite shared her bounty between multiple charities, such as the NSPCC and a Sickle Cell charity.
"And I contributed a thousand pounds to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was younger and they needed updated gear," Ms Dynamite shared with the media.
In recent years, the band contributed their prize money to the community center that developed their band, in addition to other local music groups.
Also winners that year the group donated their award to a charity for MS after a friend was diagnosed the disease.
"Receiving the award was ample," remarked vocalist the singer. "The prize was the cherry on top but we didn't require the cherry, because we had the honor. So our victory affected another person's life."
Recently, the Music Venues Trust shared it had saved several small stages in south-east England, by bringing them into community ownership.
The first in Southampton and the other in that location were acquired under the public acquisition program, which is supported by the arts council and music fans who acquire "stakes" in the properties.