Waddle told BBC Sport: "I don't know what it is but we seem to have a fear factor, we can't enjoy our football. I know we have come here with an inexperienced side but in two years' time we will be saying the same thing again. It never seems to change.
"When Uruguay pressed us today we were awful, we were petrified, Uruguay wanted it in any area, the teams we play seem to know how to win matches and we don't."
England can still reach the last 16, if Italy beat both Costa Rica and Uruguay and Roy Hodgson's men beat the Central American side by enough to boost their goal difference.