Outlaw holding Irish child (5)
I believe the answer is:
bairn
'child' is the definition.
(Scottish and northern English term for a child)
'outlaw holding irish' is the wordplay.
'outlaw' becomes 'ban' (banning is a kind of outlawing).
'holding' means one lot of letters goes inside another.
'irish' becomes 'IR' (abbreviation).
'ban' going around 'ir' is 'BAIRN'.
(Other definitions for bairn that I've seen before include "A Scottish child?" , "Scot. child" , "Kid" , "Scots child" , "A tot of Scotch" .)