The star has handed over the full amount of his £25k honor cash to the Music Venues Trust, which functions to save the UK's grassroots music venues.
The star was presented with the award on October 16 as his latest record his work was named the best record of the past year.
The musician has chosen to hand the money over to the trust, in appreciation of the crucial part grassroots venues fulfilled in his beginning days.
"I wouldn't be doing what I am doing today if it wasn't for all the performances I did around the North East, and beyond, when I was just getting going," remarked the artist. "These locations are legendary, but they are struggling."
Since the start of 2023, at least 150 of these venues have shut down – roughly 16 percent of the whole industry in the UK.
Recently, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to help venues survive, by adding a modest fee to their ticket costs, which benefits smaller concert halls.
He also participated, collecting over £100k on his 2024 arena tour to support 38 grassroots venues across the UK.
The donation supported spaces that were confronting potential shutdown due to difficulties stemming from flooding, fires and family tragedies, as well as licensing issues, court cases and noise complaints.
Some locations obtained monetary aid in modernizing infrastructure and technical equipment that helped musicians and fans.
"The concept that funds from shows in major spaces backs the smaller venues, where it all starts for performers like me, is just sensible," the star has stated.
He is not the first artist to give his Mercury Prize winnings to good deeds.
When the band earned the award in 1996 for their record the album, vocalist Jarvis Cocker announced that the group would give their cash to the organization War Child.
During 2002, artist she shared her bounty across multiple good causes, like the NSPCC and a Sickle Cell charity.
"Additionally, I contributed a grand to Highgate Newtown, to their classes, because I trained in gymnastics when I was younger and they lacked better apparatus," the artist explained to outlets.
Previously, the band gave their winnings to the community center that developed their band, as well as other grassroots music organisations.
Additionally winners that year the group contributed their winnings to a charity for MS after a friend was diagnosed the disease.
"The victory was ample," remarked artist Small. "The prize was the bonus but we didn't need the extra, because we had the main prize. So our victory affected another person's life."
Recently, the MVT announced it had protected a couple of small stages in the South East, by bringing them into community ownership.
The first in the city and The Croft in that location were bought under the Own Our Venues scheme, which is funded by Arts Council England and music fans who purchase "shares" in the buildings.