The star has donated the complete sum of his £25,000 award cash to the trust for venues, which functions to protect the United Kingdom's grassroots concert spaces.
He was awarded the award on 16 October as his new release the album was chosen as the top album of the previous year.
He has decided to hand the money over to the MVT, in recognition of the crucial part small stages played in his early career.
"As an artist couldn't be pursuing what I am doing today if it wasn't for all the shows I played around the region, and further afield, when I was beginning," stated Fender. "These spaces are legendary, but they are struggling."
Since the start of 2023, at least 150 of these locations have permanently closed – roughly one-sixth of the whole industry in the UK.
Over the past year, top acts including Pulp, Coldplay, Katy Perry and Sheeran have all aided the MVT in its initiatives to keep the scene afloat, by applying a small levy to their ticket prices, which supports independent venues.
He also joined in, generating in excess of £100,000 on his recent tour to assist 38 local spots across the UK.
The donation helped locations that were confronting imminent closure due to difficulties stemming from flooding, fires and family tragedies, as well as licensing issues, court cases and neighbor objections.
Some locations received funding support in upgrading infrastructure and technical equipment that directly benefitted artists and audiences.
"The notion that revenue from concerts in big venues supports the independent spots, where it all starts for performers like me, is just common sense," the star has commented.
Fender is among several artists to donate his Mercury Prize winnings to worthy causes.
In they received the trophy in 1996 for their release their work, lead singer the singer announced that the band would donate their prize money to the organization the charity.
During 2002, musician the artist divided her bounty between a few charities, like the NSPCC and a Sickle Cell organization.
"And I gave a £1,000 to Highgate Newtown, to their classes, because I practiced gymnastics when I was a child and they needed updated gear," Ms Dynamite shared with the media.
Previously, the band donated their funds to the youth organization that developed their band, in addition to other independent music bodies.
Also the 1994 recipients M People contributed their prize to a multiple sclerosis charity after a friend was identified with the illness.
"Receiving the award was quite enough," stated vocalist Heather Small. "The cash was the extra but we didn't require the extra, because we had the cake. So our winning affected somebody else's life."
Last week, the trust revealed it had saved a couple of local spots in south-east England, by transferring them to public stewardship.
The first in Southampton and the second in that location were acquired under the public acquisition program, which is funded by Arts Council England and music fans who acquire "ownership units" in the buildings.
