Charity with old put in hovel (7)
I believe the answer is:
handout
'charity' is the definition.
(handout is a kind of charity)
'with old put in hovel' is the wordplay.
'with' becomes 'and'.
'old' becomes 'o' (common abbreviation eg in OE for Old English).
'put in' means one lot of letters goes inside another.
'hovel' becomes 'hut' (synonyms).
'and'+'o'='ando'
'ando' placed within 'hut' is 'HANDOUT'.
(Other definitions for handout that I've seen before include "dole?" , "charity" , "financial support" , "Publicity" , "Donation" .)