The hosts went into the final day in London requiring 214 runs for victory with six wickets to spare, but they lost all of those for just 50 runs as they finished 95 short of the target that had been set by the tourists.
With that and other recent collapses in mind, former England captain Vaughan has called for "change".
"It's been absolutely pathetic from England. We've seen some collapses in the last year against Australia, Sri Lanka and now India, but this is the worst of the lot. Something has got to change," he told BBC Sport.
England are now without a victory in 10 Tests, seven of which they have lost.