Cryptic crossword clue
4d

The most common and most likely answer to this crossword clue is the 7 letter word PAUPERS

I've seen this crossword clue in Independent
P
A
U
P
E
R
S

Buddy explains!

The straight part
We know that "Souls essentially dressed in rags? (7)/Souls essentially dressed in rags?" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case souls essentially dressed in rags? (7)/souls essentially dressed in rags? = paupers.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does PAUPERS mean?

PAUPERS noun
  1. One who is extremely poor.
  2. One living on or eligible for public charity.

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