The artist has handed over the entirety of his twenty-five thousand pound award cash to the Music Venues Trust, which functions to protect the Britain's independent live music spots.
He was given the award on October 16 as his latest record his work was chosen as the top album of the last 12 months.
The musician has decided to hand the money over to the Music Venues Trust, in acknowledgment of the crucial part local spots played in his early career.
"As an artist wouldn't be doing this success if it wasn't for all the shows I played around the region, and beyond, when I was starting out," remarked Sam Fender. "These locations are renowned, but they are facing challenges."
Since the start of 2023, at least 150 of these venues have shut down – about one-sixth of the entire UK sector.
In the last year, well-known musicians including Pulp, the group Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its attempts to support the industry, by including a minor surcharge to their ticket costs, which goes to help smaller concert halls.
He also took part, collecting in excess of £100,000 on his live tour to support 38 small stages across Britain.
The money assisted locations that were dealing with potential shutdown due to difficulties stemming from flooding, fire incidents and personal losses, as well as permit problems, court cases and sound issues.
Other venues were granted funding support in upgrading infrastructure and sound and lighting systems that positively impacted performers and audiences.
"The idea that revenue from concerts in large arenas supports the independent spots, where it begins for performers like me, is just sensible," Sam Fender has said.
He is among several artists to donate his Mercury Prize winnings to good deeds.
When the band earned the prize in 1996 for their record their work, vocalist Cocker declared that the group would give their winnings to the non-profit War Child.
That year, musician the artist divided her prize between several charities, such as the children's charity and a Sickle Cell charity.
"And I contributed a £1,000 to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they required new equipment," Ms Dynamite shared with outlets.
In recent years, they gave their winnings to the local youth club that supported their group, as well as other local music groups.
Additionally 1994 winners they donated their prize to a multiple sclerosis charity after a acquaintance was found to have the disease.
"The victory was quite enough," remarked vocalist Small. "The cash was the extra but we could do without the bonus, because we had the main prize. So our victory touched the lives of others."
Last week, the Music Venues Trust shared it had saved a couple of small stages in south-east England, by bringing them into public stewardship.
One venue in the city and The Croft in that location were acquired under the Own Our Venues scheme, which is supported by a national body and supporters who acquire "stakes" in the buildings.