The star has handed over the complete sum of his £25k award cash to the MVT, which operates to protect the Britain's independent music venues.
The star was awarded the prize on mid-October as his latest record People Watching was named the top album of the last 12 months.
The musician has chosen to hand the money over to the MVT, in acknowledgment of the crucial part small stages fulfilled in his beginning days.
"I personally wouldn't be doing my current career if it wasn't for all the performances I did around the North East, and beyond, when I was starting out," said the artist. "These locations are legendary, but they are in difficulty."
Beginning in 2023, more than 150 of these spaces have permanently closed – about 16% of the entire UK sector.
Recently, well-known musicians like Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its attempts to support the industry, by including a small levy to their admission fees, which supports smaller concert halls.
He also took part, generating more than £100,000 on his live tour to support numerous small stages across England, Scotland, and Wales.
These funds assisted locations that were dealing with potential shutdown due to challenges arising from flooding, fire incidents and family tragedies, as well as regulatory hurdles, court cases and sound issues.
Additional spaces received funding support in improving amenities and sound and lighting systems that positively impacted artists and audiences.
"The idea that revenue from shows in big venues backs the local stages, where it begins for musicians like me, is just logical," the star has said.
He is far from the only musician to donate his Mercury Prize funds to worthy causes.
When Pulp received the prize in the mid-90s for their record the album, vocalist Jarvis Cocker announced that the group would contribute their prize money to the organization War Child.
That year, musician she divided her award among several good causes, such as the children's charity and a Sickle Cell charity.
"Additionally, I gave a £1,000 to the center, to their gymnastics program, because I practiced gymnastics when I was younger and they required better apparatus," Ms Dynamite told outlets.
In recent years, the band contributed their prize money to the community center that nurtured their act, as well as other local music groups.
Also the 1994 recipients the group gave their prize to a multiple sclerosis charity after a acquaintance was found to have the illness.
"Receiving the award was sufficient," stated vocalist the singer. "The money was the cherry on top but we didn't require the cherry, because we had the cake. So our success affected the lives of others."
In the past week, the MVT revealed it had rescued a couple of small stages in south-east England, by bringing them into community ownership.
The Joiners in Southampton and the other in Bristol were bought under the Own Our Venues program, which is funded by a national body and supporters who buy "stakes" in the venues.
