The star has handed over the complete sum of his £25k award cash to the MVT, which functions to protect the Britain's independent music venues.
The star was awarded the prize on mid-October as his third album the album was chosen as the top album of the past year.
He has decided to give the cash to the trust, in recognition of the vital role small stages fulfilled in his early career.
"I wouldn't be doing this success if it weren't for all the shows I played around the area, and elsewhere, when I was just getting going," remarked the artist. "These locations are renowned, but they are struggling."
Since the start of 2023, over 150 of these venues have shut down – roughly 16% of the whole industry in the UK.
In the last year, well-known musicians such as Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all aided the trust in its initiatives to keep the scene afloat, by adding a minor surcharge to their ticket costs, which supports local stages.
He also participated, collecting more than £100,000 on his live tour to assist 38 local spots across Britain.
The donation assisted venues that were confronting potential shutdown due to difficulties arising from flooding, fire incidents and personal losses, as well as permit problems, court cases and sound issues.
Some locations obtained monetary aid in improving amenities and technical equipment that helped performers and concertgoers.
"The idea that money from shows in big venues backs the independent spots, where it begins for musicians like me, is just sensible," the star has commented.
The musician is far from the only musician to donate his Mercury Prize funds to worthy causes.
When Pulp earned the trophy in the year 1996 for their album their work, lead singer the singer declared that the act would give their cash to the organization War Child.
That year, musician she divided her award among a few good causes, including the NSPCC and a Sickle Cell charity.
"And I donated a £1,000 to my local community centre, to their classes, because I trained in gymnastics when I was a child and they needed better apparatus," the artist explained to the media.
In recent years, Ezra Collective contributed their funds to the community center that nurtured their band, as well as other independent music bodies.
Also winners that year they gave their winnings to a MS organization after a close contact was diagnosed the disease.
"The victory was quite enough," remarked vocalist the singer. "The prize was the cherry on top 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 rescued a couple of local spots in the South East, by transferring them to community ownership.
One venue in that area and the other in Bristol were bought under the Own Our Venues program, which is backed by the arts council and enthusiasts who acquire "shares" in the properties.
