The artist has given the entirety of his £25k award cash to the MVT, which operates to save the Britain's independent music venues.
The star was awarded the award on mid-October as his new release his work was declared the top album of the last 12 months.
He has chosen to hand the money over to the trust, in appreciation of the crucial part grassroots venues fulfilled in his initial steps.
"As an artist couldn't be pursuing what I am doing today if it hadn't been for all the shows I did around the North East, and elsewhere, when I was starting out," remarked the artist. "These spaces are renowned, but they are struggling."
Since the start of 2023, over 150 of these spaces have shut down – about one-sixth of the total UK scene.
Recently, top acts like the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its efforts to support the industry, by adding a minor surcharge to their admission fees, which goes to help local stages.
Sam Fender also took part, generating over £100k on his recent tour to help thirty-eight small stages across England, Scotland, and Wales.
The donation supported locations that were dealing with possible closure due to challenges stemming from floods, blazes and bereavements, as well as regulatory hurdles, conflicts and noise complaints.
Other venues received funding support in upgrading infrastructure and technical equipment that positively impacted performers and audiences.
"The idea that funds from concerts in large arenas helps the smaller venues, where it begins for artists like me, is just logical," the star has stated.
He is among several artists to give his Mercury Prize winnings to charitable organizations.
When Pulp received the prize in 1996 for their album the album, frontman Jarvis Cocker declared that the group would contribute their prize money to the organization War Child.
In 2002, artist Ms Dynamite shared her award between several charities, including the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a £1,000 to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was a child and they needed updated gear," the artist explained to outlets.
Two years ago, the band gave their winnings to the local youth club that nurtured their group, alongside other grassroots music organisations.
Also 1994 winners M People donated their prize to a MS organization after a friend was found to have the illness.
"Receiving the award was ample," stated vocalist the singer. "The prize was the extra but we didn't need the extra, because we had the honor. So our success touched somebody else's life."
Last week, the Music Venues Trust shared it had saved two local spots in that region, by transferring them to community ownership.
The Joiners in the city and The Croft in Bristol were acquired under the community ownership scheme, which is funded by a national body and music fans who acquire "ownership units" in the buildings.