The star has given the complete sum of his twenty-five thousand pound award winnings to the trust for venues, which functions to preserve the UK's grassroots concert spaces.
The star was awarded the prize on 16 October as his latest record the album was declared the best record of the previous year.
The musician has decided to donate the funds to the MVT, in appreciation of the crucial part local spots played in his early career.
"I personally couldn't be pursuing my current career if it hadn't been for all the gigs I played around the region, and further afield, when I was starting out," remarked Fender. "These venues are renowned, but they are struggling."
Beginning in 2023, more than 150 of these spaces have ceased operations – approximately 16 percent of the total UK scene.
Recently, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its initiatives to support the industry, by adding a modest fee to their ticket costs, which goes to help local stages.
He also joined in, raising more than £100,000 on his 2024 arena tour to assist 38 small stages across the UK.
The money assisted venues that were dealing with imminent closure due to difficulties arising from flooding, blazes and personal losses, as well as regulatory hurdles, conflicts and neighbor objections.
Other venues were granted financial assistance in upgrading amenities and sound and lighting systems that directly benefitted musicians and fans.
"The notion that funds from performances in big venues helps the smaller venues, where it kicks off for artists like me, is just logical," Fender has said.
He is among several artists to give his Mercury Prize winnings to good deeds.
In Pulp earned the award in 1996 for their record the album, vocalist Jarvis Cocker stated that the act would contribute their prize money to the non-profit War Child.
During 2002, artist she divided her prize among a few charities, including the NSPCC and a Sickle Cell organization.
"And I donated a thousand pounds to my local community centre, to their gymnastics program, because I trained in gymnastics when I was growing up and they needed better apparatus," Ms Dynamite told outlets.
Two years ago, Ezra Collective donated their winnings to the local youth club that nurtured their group, alongside other independent music bodies.
Additionally 1994 winners the group donated their prize to a charity for MS after a close contact was identified with the illness.
"Receiving the award was quite enough," said vocalist Small. "The prize was the extra but we could do without the extra, because we had the honor. So our victory affected another person's life."
In the past week, the trust revealed it had rescued several small stages in that region, by bringing them into community ownership.
The first in the city and the other in Bristol were acquired under the community ownership program, which is backed by the arts council and music fans who acquire "ownership units" in the properties.