The most common and most likely answer to this crossword clue is the 4 plus 3 letter word FLAT CAP
I've seen this crossword clue in Financial Times
F
L
A
T
C
A
P
More clues leading to the result FLAT CAP
- Even better item worn on the head
- Even better headgear
- Even better, one's peaked
- Working class under this perhaps even better?
- Where Spooner’s queen may go in casual headgear?
- Panic about a court reversing working-class symbol
- Act strangely in panic to find overhead cover
- Uninspiring peak for hat
- Cover for head of state overturning treaty
- Fluster receiving bill raised for headwear
Buddy explains!

The straight part
We know that "hat" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case hat = flat cap.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.