In an interview with ITV News, the musician said that as Peaches' parent he was responsible for her "and clearly failed".
He also revealed that he had known about her heroin addiction and had tried to help her through it.
"Of course I knew about it and we did talk about it," Sir Bob said. "She was super bright. Too bright. A very errant mind that could focus intensely on a book which she would consume and just absorb it.
"But the rest was a franticness. She knew what life was supposed to be and, God bless her, she tried very hard to get there. And she didn't make it."
Sir Bob also addressed the intense media interest in his children following his split from their mother Paula Yates, and her subsequent death in 2000.
"They got at them to get at me," the singer said. "Because it hurt me so much but it just damaged them, and I'm not blaming the newspapers of course… You blame yourself.
"You're the father who is responsible and clearly failed."
Asked if he really felt responsible, he replied, "Yes, of course you do. For anybody watching who has a dead kid and you're a parent: you go back, you go back, you go back, you go back, you go over, you go over. What could you have done? You do as much as you can."
Sir Bob said he had still not come to terms with his daughter's death – but said that performing with the Boomtown Rats helped him escape his grief, if only for a short while.
"I put on my snakeskin suit and I can be this other thing," he said. "It is utterly cathartic. Those two hours and I am drained. In every sense it empties, it drains my mind. On stage I'm lost in this thing and it's a very brief respite.”