Paper towel covers tramp (7)
I believe the answer is:
drifter
'tramp' is the definition.
(I've seen this in another clue)
'paper towel covers' is the wordplay.
'paper' becomes 'ft' (newspaper the FT, Financial Times).
'towel' becomes 'drier' (something which dries).
'covers' is an insertion indicator.
'ft' going within 'drier' is 'DRIFTER'.
(Other definitions for drifter that I've seen before include "Wanderer; fishing vessel" , "Bum" , "Gadabout" , "Itinerant type" , "Person of no fixed abode" .)