Retired teacher, Charlie, drinking at dance (3,1,3)

I believe the answer is:

cut a rug

I'm a little stuck... Click here to teach me more about this clue!

'dance' is the definition.
(I've seen this before)

I don't understand the remainder of the clue.

(Another definition for cut a rug that I've seen is " dance".)

I've seen this clue in The Telegraph.

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