Sam Fender has donated the entirety of his £25k honor cash to the Music Venues Trust, which works to protect the Britain's small live music spots.
Fender was awarded the award on mid-October as his new release People Watching was declared the top album of the past year.
He has opted to hand the money over to the Music Venues Trust, in recognition of the crucial part grassroots venues had in his early career.
"I couldn't be pursuing what I am doing today if it hadn't been for all the gigs I played around the North East, and beyond, when I was beginning," said Fender. "These locations are renowned, but they are struggling."
From early 2023 onward, at least 150 of these locations have ceased operations – approximately 16 percent of the total UK scene.
Recently, well-known musicians including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to support the industry, by including a modest fee to their admission fees, which benefits local stages.
Fender also joined in, generating over £100k on his live tour to support 38 grassroots venues across Britain.
The donation helped venues that were facing potential shutdown due to difficulties stemming from floods, blazes and family tragedies, as well as licensing issues, court cases and noise complaints.
Additional spaces were granted financial assistance in improving facilities and gear that positively impacted artists and fans.
"The idea that funds from shows in large arenas supports the independent spots, where it begins for performers like me, is just sensible," the star has stated.
Fender is not the first artist to donate his Mercury Prize prize money to worthy causes.
When Pulp earned the trophy in 1996 for their album the album, frontman the singer declared that the group would give their winnings to the charity the charity.
That year, musician Ms Dynamite split her prize between a few good causes, such as the NSPCC and a Sickle Cell charity.
"And I gave a thousand pounds to Highgate Newtown, to their classes, because I practiced gymnastics when I was a child and they needed new equipment," the artist explained to a publication.
In recent years, they contributed their winnings to the local youth club that developed their group, alongside other independent music bodies.
Also 1994 winners M People gave their prize to a multiple sclerosis charity after a acquaintance was identified with the disease.
"Winning was sufficient," stated singer the singer. "The cash was the bonus but we could do without the cherry, because we had the honor. So our winning impacted somebody else's life."
Recently, the Music Venues Trust shared it had rescued two small stages in south-east England, by transferring them to community ownership.
The Joiners in the city and the second in the city were purchased under the public acquisition program, which is supported by Arts Council England and music fans who purchase "ownership units" in the buildings.