The star has donated the full amount of his £25,000 honor cash to the Music Venues Trust, which operates to protect the United Kingdom's grassroots live music spots.
He was presented with the award on 16 October as his third album the album was declared the outstanding release of the past year.
He has decided to donate the funds to the MVT, in acknowledgment of the essential function local spots played in his beginning days.
"I would not have achieved my current career if it weren't for all the shows I did around the region, and elsewhere, when I was beginning," stated Sam Fender. "These spaces are legendary, but they are in difficulty."
Beginning in 2023, at least 150 of these venues have shut down – approximately 16 percent of the entire UK sector.
Over the past year, well-known musicians like Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to support the industry, by including a minor surcharge to their admission fees, which goes to help smaller concert halls.
He also participated, generating more than £100,000 on his live tour to help 38 grassroots venues across England, Scotland, and Wales.
These funds assisted locations that were facing possible closure due to difficulties caused by water damage, blazes and bereavements, as well as regulatory hurdles, conflicts and noise complaints.
Some locations received funding support in modernizing amenities and technical equipment that directly benefitted performers and fans.
"The notion that funds from shows in large arenas helps the smaller venues, where it kicks off for performers like me, is just logical," Sam Fender has said.
The musician is far from the only musician to contribute his Mercury Prize winnings to good deeds.
When Pulp won the award in the year 1996 for their record the album, lead singer Jarvis Cocker declared that the group would donate their cash to the charity War Child.
That year, rapper and singer Ms Dynamite shared her award between multiple charities, like the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a grand to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they lacked new equipment," Ms Dynamite explained to a publication.
Previously, the band gave their winnings to the youth organization that supported their act, as well as other local music groups.
Additionally winners that year M People gave their winnings to a MS organization after a acquaintance was diagnosed the illness.
"Winning was ample," said vocalist the singer. "The cash was the bonus but we didn't need the bonus, because we had the honor. So our winning touched the lives of others."
Recently, the trust announced it had protected a couple of grassroots venues in the South East, by placing them under community ownership.
The first in that area and the second in the city were bought under the public acquisition initiative, which is supported by the arts council and enthusiasts who acquire "stakes" in the buildings.
