Let everybody out, do we? (7)
I believe the answer is:
allowed
'let everybody out do we?' is the definition.
I can't judge whether this defines the answer.
'everybody out do we?' is the wordplay.
'everybody' becomes 'all' (I've seen this before).
'out' indicates an anagram.
'do'+'we'='dowe'
'dowe' with letters rearranged gives 'owed'.
'all'+'owed'='ALLOWED'
Can you help me to learn more?
(Other definitions for allowed that I've seen before include "Given the chance" , "Acknowledged" , "Given permission" , "Permitted and granted" , "permissible" .)