The star has donated the full amount of his £25,000 honor cash to the Music Venues Trust, which works to protect the UK's grassroots concert spaces.
The star was presented with the award on mid-October as his third album the album was declared the top album of the last 12 months.
Fender has decided to give the cash to the MVT, in appreciation of the crucial part grassroots venues fulfilled in his beginning days.
"I personally couldn't be pursuing my current career if it hadn't been for all the shows I performed around the North East, and beyond, when I was beginning," remarked the artist. "These locations are legendary, but they are in difficulty."
From early 2023 onward, at least 150 of these spaces have shut down – about one-sixth of the whole industry in the UK.
Over the past year, well-known musicians including the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the Music Venues Trust in its initiatives to support the industry, by including a small levy to their ticket costs, which goes to help local stages.
Fender also participated, generating more than £100,000 on his live tour to assist thirty-eight local spots across the UK.
The money helped spaces that were facing possible closure due to difficulties stemming from floods, blazes and family tragedies, as well as permit problems, legal disputes and sound issues.
Some locations were granted funding support in modernizing amenities and sound and lighting systems that directly benefitted artists and concertgoers.
"The concept that funds from concerts in large arenas supports the independent spots, where it begins for performers like me, is just sensible," the star has stated.
Fender is among several artists to give his Mercury Prize funds to charitable organizations.
In Pulp received the trophy in 1996 for their record their work, lead singer the singer announced that the group would contribute their winnings to the non-profit War Child.
In 2002, musician the artist divided her bounty among several organizations, like the NSPCC and a Sickle Cell organization.
"And I donated a £1,000 to the center, to their classes, because I practiced gymnastics when I was a child and they required better apparatus," she explained to outlets.
In recent years, they donated their winnings to the youth organization that developed their act, alongside other independent music bodies.
And the 1994 recipients the group donated their winnings to a charity for MS after a friend was found to have the disease.
"The victory was sufficient," remarked artist the singer. "The money was the extra but we didn't need the cherry, because we had the main prize. So our winning impacted somebody else's life."
Recently, the MVT revealed it had rescued two local spots in that region, by bringing them into local control.
The first in Southampton and The Croft in Bristol were purchased under the Own Our Venues initiative, which is funded by a national body and enthusiasts who acquire "stakes" in the properties.