The artist has donated the entirety of his £25k award cash to the Music Venues Trust, which functions to preserve the UK's grassroots concert spaces.
The star was given the award on mid-October as his third album People Watching was chosen as the top album of the last 12 months.
The musician has chosen to donate the funds to the MVT, in acknowledgment of the essential function local spots played in his early career.
"I personally would not have achieved what I am doing today if it wasn't for all the shows I did around the region, and further afield, when I was just getting going," remarked Fender. "These venues are iconic, but they are struggling."
Since the start of 2023, at least 150 of these spaces have permanently closed – roughly one-sixth of the entire UK sector.
Recently, well-known musicians including Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the MVT in its attempts to keep the scene afloat, by including a small levy to their ticket prices, which supports local stages.
Fender also participated, collecting more than £100,000 on his live tour to assist thirty-eight grassroots venues across England, Scotland, and Wales.
The money helped spaces that were confronting imminent closure due to issues stemming from water damage, fire incidents and bereavements, as well as regulatory hurdles, conflicts and sound issues.
Some locations were granted financial assistance in improving amenities and sound and lighting systems that directly benefitted musicians and fans.
"The idea that money from concerts in big venues helps the independent spots, where it begins for artists like me, is just sensible," Fender has commented.
Fender is far from the only musician to give his Mercury Prize funds to worthy causes.
When the band won the award in 1996 for their album their work, lead singer the singer stated that the act would contribute their winnings to the non-profit War Child.
In 2002, musician Ms Dynamite divided her prize across several good causes, such as the children's charity and a charity for Sickle Cell.
"And I donated a £1,000 to the center, to their gymnastics class, because I trained in gymnastics when I was growing up and they lacked new equipment," the artist explained to the media.
Two years ago, the band gave their prize money to the community center that nurtured their act, alongside other grassroots music organisations.
Also the 1994 recipients the group gave their prize to a multiple sclerosis charity after a close contact was diagnosed the condition.
"The victory was ample," remarked artist Heather Small. "The money was the bonus but we could do without the cherry, because we had the honor. So our victory impacted another person's life."
In the past week, the Music Venues Trust shared it had protected two local spots in south-east England, by transferring them to public stewardship.
The Joiners in the city and The Croft in that location were purchased under the public acquisition program, which is funded by Arts Council England and enthusiasts who acquire "stakes" in the venues.
