Hi again stevea, it's supposed to read littish and refers to the days when public lavatories required the insertion of an old penny which upon decimalisation was either scrapped or like most things at the time saw an increase to 2 new pence if I remember correctly.
The wordplay is an extraction (no pun intended) anagram of "cubicle via one new pence" less "a wee", anagrind: means operating and extraction indicator: needing.